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Is Beijing Enterprises Medical and Health Industry Group Limited's (HKG:2389) CEO Pay Fair?

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Jing Ming Zhang became the CEO of Beijing Enterprises Medical and Health Industry Group Limited (HKG:2389) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Beijing Enterprises Medical and Health Industry Group

How Does Jing Ming Zhang's Compensation Compare With Similar Sized Companies?

Our data indicates that Beijing Enterprises Medical and Health Industry Group Limited is worth HK$997m, and total annual CEO compensation was reported as HK$714k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Beijing Enterprises Medical and Health Industry Group has changed over time.

SEHK:2389 CEO Compensation, January 27th 2020
SEHK:2389 CEO Compensation, January 27th 2020

Is Beijing Enterprises Medical and Health Industry Group Limited Growing?

On average over the last three years, Beijing Enterprises Medical and Health Industry Group Limited has grown earnings per share (EPS) by 64% each year (using a line of best fit). In the last year, its revenue changed by just 0.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Beijing Enterprises Medical and Health Industry Group Limited Been A Good Investment?

With a three year total loss of 61%, Beijing Enterprises Medical and Health Industry Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.