In 2017, Shulan Qin was appointed CEO of New Concepts Holdings Limited (HKG:2221). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for New Concepts Holdings

How Does Shulan Qin's Compensation Compare With Similar Sized Companies?

Our data indicates that New Concepts Holdings Limited is worth HK$125m, and total annual CEO compensation was reported as HK$1.4m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$681k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of New Concepts Holdings. Speaking on an industry level, we can see that nearly 90% of total compensation represents salary, while the remainder of 9.7% is other remuneration. It's interesting to note that New Concepts Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry.

That means Shulan Qin receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at New Concepts Holdings has changed over time.

Is New Concepts Holdings Limited Growing?

Over the last three years New Concepts Holdings Limited has shrunk its earnings per share by an average of 63% per year (measured with a line of best fit). It achieved revenue growth of 9.5% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has New Concepts Holdings Limited Been A Good Investment?

With a three year total loss of 94%, New Concepts Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.