In This Article:
Fenglei Liu became the CEO of China Harmony New Energy Auto Holding Limited (HKG:3836) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for China Harmony New Energy Auto Holding
How Does Fenglei Liu’s Compensation Compare With Similar Sized Companies?
Our data indicates that China Harmony New Energy Auto Holding Limited is worth HK$4.8b, and total annual CEO compensation is CN¥1.9m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥540k. We looked at a group of companies with market capitalizations from CN¥2.7b to CN¥11b, and the median CEO compensation was CN¥2.7m.
So Fenglei Liu receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at China Harmony New Energy Auto Holding has changed from year to year.
Is China Harmony New Energy Auto Holding Limited Growing?
China Harmony New Energy Auto Holding Limited has increased its earnings per share (EPS) by an average of 7.1% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -3.8%.
I would argue that the lack of revenue growth in the last year is less than ideal, but I’m happy with the EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has China Harmony New Energy Auto Holding Limited Been A Good Investment?
With a three year total loss of 21%, China Harmony New Energy Auto Holding Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Fenglei Liu is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don’t think the compensation is modest! Shareholders may want to check for free if China Harmony New Energy Auto Holding insiders are buying or selling shares.