The CEO of I.T Limited (HKG:999) is Kar Sham. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for I.T
How Does Kar Sham's Compensation Compare With Similar Sized Companies?
Our data indicates that I.T Limited is worth HK$2.2b, and total annual CEO compensation was reported as HK$22m for the year to February 2019. We think total compensation is more important but we note that the CEO salary is lower, at HK$8.2m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from HK$777m to HK$3.1b, and the median CEO total compensation was HK$2.3m.
It would therefore appear that I.T Limited pays Kar Sham more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at I.T has changed from year to year.
Is I.T Limited Growing?
On average over the last three years, I.T Limited has grown earnings per share (EPS) by 9.1% each year (using a line of best fit). Revenue was pretty flat on last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but I'm happy with the EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has I.T Limited Been A Good Investment?
Given the total loss of 32% over three years, many shareholders in I.T Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by I.T Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling I.T shares (free trial).
Important note: I.T may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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Why I.T Limited's (HKG:999) CEO Pay Matters To You - Yahoo Finance
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