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Minglie Hu has been the CEO of Huan Yue Interactive Holdings Limited (HKG:505) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Huan Yue Interactive Holdings
How Does Minglie Hu's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Huan Yue Interactive Holdings Limited has a market cap of HK$580m, and is paying total annual CEO compensation of CN¥1.7m. (This is based on the year to December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.2m. 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.
So Minglie Hu 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 Huan Yue Interactive Holdings, below.
Is Huan Yue Interactive Holdings Limited Growing?
Huan Yue Interactive Holdings Limited has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Huan Yue Interactive Holdings Limited Been A Good Investment?
Given the total loss of 25% over three years, many shareholders in Huan Yue Interactive Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Remuneration for Minglie Hu is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last 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 Huan Yue Interactive Holdings shares (free trial).