Jianqiu Zhu is the CEO of Changhong Jiahua Holdings Limited (HKG:8016). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
Check out our latest analysis for Changhong Jiahua Holdings
How Does Jianqiu Zhu's Compensation Compare With Similar Sized Companies?
According to our data, Changhong Jiahua Holdings Limited has a market capitalization of HK$1.8b, and paid its CEO total annual compensation worth HK$12m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$1.3m. 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 examined companies with market caps from HK$777m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.1m.
It would therefore appear that Changhong Jiahua Holdings Limited pays Jianqiu Zhu 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.
You can see, below, how CEO compensation at Changhong Jiahua Holdings has changed over time.
Is Changhong Jiahua Holdings Limited Growing?
On average over the last three years, Changhong Jiahua Holdings Limited has grown earnings per share (EPS) by 10% each year (using a line of best fit). In the last year, its revenue is up 18%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Changhong Jiahua Holdings Limited Been A Good Investment?
Since shareholders would have lost about 8.5% over three years, some Changhong Jiahua Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Changhong Jiahua Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.