In This Article:
Xiao Zhuang is the CEO of Jiahua Stores Holdings Limited (HKG:602). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Jiahua Stores Holdings
How Does Xiao Zhuang's Compensation Compare With Similar Sized Companies?
According to our data, Jiahua Stores Holdings Limited has a market capitalization of HK$238m, and paid its CEO total annual compensation worth CN¥1.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥244k. We further remind readers that the CEO may face performance requirements to receive the non-salary part 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.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Jiahua Stores Holdings has changed from year to year.
Is Jiahua Stores Holdings Limited Growing?
Jiahua Stores Holdings Limited has reduced its earnings per share by an average of 24% a year, over the last three years (measured with a line of best fit). Revenue was pretty flat on last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Jiahua Stores Holdings Limited Been A Good Investment?
With a three year total loss of 48%, Jiahua Stores Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like Jiahua Stores Holdings Limited pays its CEO less than similar sized companies.
Xiao Zhuang is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Taking a breather from CEO compensation, we've spotted 5 warning signs for Jiahua Stores Holdings (of which 1 doesn't sit too well with us!) you should know about in order to have a holistic understanding of the stock.