In This Article:
Shuixiao Dong has been the CEO of China New City Commercial Development Limited (HKG:1321) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
View our latest analysis for China New City Commercial Development
How Does Shuixiao Dong's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China New City Commercial Development Limited has a market cap of HK$2.0b, and is paying total annual CEO compensation of CN¥689k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥540k. We looked at a group of companies with market capitalizations from CN¥712m to CN¥2.8b, and the median CEO total compensation was CN¥2.2m.
Most shareholders would consider it a positive that Shuixiao Dong takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at China New City Commercial Development, below.
Is China New City Commercial Development Limited Growing?
On average over the last three years, China New City Commercial Development Limited has shrunk earnings per share by 83% each year (measured with a line of best fit). It achieved revenue growth of 206% over the last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China New City Commercial Development Limited Been A Good Investment?
Since shareholders would have lost about 57% over three years, some China New City Commercial Development Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that China New City Commercial Development Limited remunerates its CEO below most similar sized companies.