In This Article:
Shuixiao Dong became the CEO of China New City Commercial Development Limited (HKG:1321) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View our latest analysis for China New City Commercial Development
How Does Shuixiao Dong’s Compensation Compare With Similar Sized Companies?
According to our data, China New City Commercial Development Limited has a market capitalization of HK$1.9b, and pays its CEO total annual compensation worth CN¥699k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥694m to CN¥2.8b. The median total CEO compensation was CN¥1.9m.
A first glance this seems like a real positive for shareholders, since Shuixiao Dong is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at China New City Commercial Development has changed from year to year.
Is China New City Commercial Development Limited Growing?
Over the last three years China New City Commercial Development Limited has shrunk its earnings per share by an average of 21% per year. In the last year, its revenue is up 33%.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has China New City Commercial Development Limited Been A Good Investment?
Given the total loss of 88% over three years, many shareholders in China New City Commercial Development Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
China New City Commercial Development Limited is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Shuixiao Dong is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous.