In This Article:
In 2016 Changhai Wang was appointed CEO of China Sunshine Paper Holdings Company Limited (HKG:2002). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for China Sunshine Paper Holdings
How Does Changhai Wang's Compensation Compare With Similar Sized Companies?
Our data indicates that China Sunshine Paper Holdings Company Limited is worth HK$918m, and total annual CEO compensation was reported as CN¥1.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥476k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.
So Changhai Wang receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at China Sunshine Paper Holdings, below.
Is China Sunshine Paper Holdings Company Limited Growing?
Over the last three years China Sunshine Paper Holdings Company Limited has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). In the last year, its revenue is down 1.5%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has China Sunshine Paper Holdings Company Limited Been A Good Investment?
With a three year total loss of 17%, China Sunshine Paper Holdings Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Changhai Wang is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling China Sunshine Paper Holdings shares (free trial).