Guang Li became the CEO of China Energine International (Holdings) Limited (HKG:1185) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 China Energine International (Holdings)

How Does Guang Li's Compensation Compare With Similar Sized Companies?

Our data indicates that China Energine International (Holdings) Limited is worth HK$651m, and total annual CEO compensation was reported as HK$1.2m for the year to December 2018. Notably, the salary of HK$1.2m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.

So Guang Li receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at China Energine International (Holdings), below.

Is China Energine International (Holdings) Limited Growing?

On average over the last three years, China Energine International (Holdings) Limited has shrunk earnings per share by 107% each year (measured with a line of best fit). Its revenue is down 69% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China Energine International (Holdings) Limited Been A Good Investment?

Given the total loss of 76% over three years, many shareholders in China Energine International (Holdings) Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Guang Li is paid around what is normal the leaders of comparable size companies.

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling China Energine International (Holdings) (free visualization of insider trades).