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Xiang Yang Ding became the CEO of Glorious Property Holdings Limited (HKG:845) in 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Glorious Property Holdings
How Does Xiang Yang Ding's Compensation Compare With Similar Sized Companies?
Our data indicates that Glorious Property Holdings Limited is worth HK$3.0b, and total annual CEO compensation is CN¥883k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥789k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥1.3b to CN¥5.4b. The median total CEO compensation was CN¥1.7m.
Most shareholders would consider it a positive that Xiang Yang Ding takes less total compensation than the CEOs of most similar size companies, leaving more 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 Glorious Property Holdings has changed from year to year.
Is Glorious Property Holdings Limited Growing?
On average over the last three years, Glorious Property Holdings Limited has grown earnings per share (EPS) by 41% each year (using a line of best fit). Its revenue is up 191% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Glorious Property Holdings Limited Been A Good Investment?
With a three year total loss of 57%, Glorious Property 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...
Glorious Property Holdings Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Xiang Yang Ding is generously paid, it would be good to see an improvement in business performance before too an increase in pay.