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In 2016 Xiaozhou Chen was appointed CEO of China Cinda Asset Management Co., Ltd. (HKG:1359). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for China Cinda Asset Management
How Does Xiaozhou Chen's Compensation Compare With Similar Sized Companies?
According to our data, China Cinda Asset Management Co., Ltd. has a market capitalization of HK$69b, and pays its CEO total annual compensation worth CN¥719k. (This number is for the twelve months until December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at CN¥546k. When we examined a selection of companies with market caps ranging from CN¥28b to CN¥83b, we found the median CEO total compensation was CN¥4.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at China Cinda Asset Management, below.
Is China Cinda Asset Management Co., Ltd. Growing?
On average over the last three years, China Cinda Asset Management Co., Ltd. has shrunk earnings per share by 2.1% each year (measured with a line of best fit). It saw its revenue drop -35% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has China Cinda Asset Management Co., Ltd. Been A Good Investment?
Since shareholders would have lost about 20% over three years, some China Cinda Asset Management Co., Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like China Cinda Asset Management Co., Ltd. pays its CEO less than similar sized companies.