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How Much is Tian An China Investments Company Limited's (HKG:28) CEO Getting Paid?

Patrick Lee became the CEO of Tian An China Investments Company Limited (HKG:28) in 2007. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Tian An China Investments

How Does Patrick Lee's Compensation Compare With Similar Sized Companies?

According to our data, Tian An China Investments Company Limited has a market capitalization of HK$5.5b, and pays its CEO total annual compensation worth HK$21m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$3.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$3.1b to HK$13b. The median total CEO compensation was HK$3.6m.

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It would therefore appear that Tian An China Investments Company Limited pays Patrick Lee 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Tian An China Investments has changed over time.

SEHK:28 CEO Compensation, August 17th 2019
SEHK:28 CEO Compensation, August 17th 2019

Is Tian An China Investments Company Limited Growing?

Tian An China Investments Company Limited has reduced its earnings per share by an average of 26% a year, over the last three years (measured with a line of best fit). Its revenue is up 196% over last year.

Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Tian An China Investments Company Limited Been A Good Investment?

With a three year total loss of 2.4%, Tian An China Investments Company Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Tian An China Investments Company Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shareholders may want to check for free if Tian An China Investments insiders are buying or selling shares.

Important note: Tian An China Investments 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.

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.

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. Thank you for reading.