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Henry Chen is the CEO of Chinasoft International Limited (HKG:354). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Chinasoft International

How Does Henry Chen's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Chinasoft International Limited has a market cap of HK$9.6b, and is paying total annual CEO compensation of CN¥4.3m. (This figure is for the year to December 2017). Notably, the salary of CN¥4.2m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from CN¥6.9b to CN¥22b, we found the median CEO total compensation was CN¥3.5m.

So Henry Chen receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Chinasoft International, below.

Is Chinasoft International Limited Growing?

Over the last three years Chinasoft International Limited has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). Its revenue is up 15% over last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Chinasoft International Limited Been A Good Investment?

Chinasoft International Limited has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Henry Chen is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Chinasoft International shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.