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In 2017 Jianxin Zong was appointed CEO of Chong Hing Bank Limited (HKG:1111). 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 Chong Hing Bank
How Does Jianxin Zong's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Chong Hing Bank Limited has a market cap of HK$13b, and reported total annual CEO compensation of HK$14m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$9.0m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO total compensation was HK$3.9m.
Thus we can conclude that Jianxin Zong receives more in total compensation than the median of a group of companies in the same market, and of similar size to Chong Hing Bank Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Chong Hing Bank, below.
Is Chong Hing Bank Limited Growing?
On average over the last three years, Chong Hing Bank Limited has grown earnings per share (EPS) by 6.2% each year (using a line of best fit). Its revenue is up 1.6% over last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Chong Hing Bank Limited Been A Good Investment?
With a three year total loss of 2.3%, Chong Hing Bank Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Chong Hing Bank Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.