In This Article:
The CEO of China Modern Dairy Holdings Ltd. (HKG:1117) is Lina Gao. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for China Modern Dairy Holdings
How Does Lina Gao's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that China Modern Dairy Holdings Ltd. has a market cap of HK$5.2b, and reported total annual CEO compensation of CN¥3.8m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥2.5m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.6m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where China Modern Dairy Holdings stands. On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. China Modern Dairy Holdings does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
That means Lina Gao receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at China Modern Dairy Holdings has changed over time.
Is China Modern Dairy Holdings Ltd. Growing?
On average over the last three years, China Modern Dairy Holdings Ltd. has seen earnings per share (EPS) move in a favourable direction by 65% each year (using a line of best fit). Its revenue is up 11% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has China Modern Dairy Holdings Ltd. Been A Good Investment?
Given the total loss of 53% over three years, many shareholders in China Modern Dairy Holdings Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.