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The CEO of China Starch Holdings Limited (HKG:3838) is Shijun Gao. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for China Starch Holdings
How Does Shijun Gao's Compensation Compare With Similar Sized Companies?
Our data indicates that China Starch Holdings Limited is worth HK$989m, and total annual CEO compensation is CN¥528k. (This is based on the year to December 2018). That's a fairly small increase of 1.0% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥450k. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.5m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at China Starch Holdings has changed from year to year.
Is China Starch Holdings Limited Growing?
China Starch Holdings Limited has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.1%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has China Starch Holdings Limited Been A Good Investment?
With a total shareholder return of 25% over three years, China Starch Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
China Starch Holdings Limited is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Shijun Gao is paid too much.