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Li Zhang has been the CEO of Guangzhou R&F Properties Co Ltd (HKG:2777) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Guangzhou R&F Properties
How Does Li Zhang’s Compensation Compare With Similar Sized Companies?
According to our data, Guangzhou R&F Properties Co Ltd has a market capitalization of HK$42.9b, and pays its CEO total annual compensation worth CN¥5m. That’s a notable increase of 23% on last year. When we examined a selection of companies with market caps ranging from CN¥27.6b to CN¥82.7b, we found the median CEO compensation was CN¥3m.
As you can see, Li Zhang is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Guangzhou R&F Properties Co Ltd is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Guangzhou R&F Properties has changed over time.
Is Guangzhou R&F Properties Co Ltd Growing?
Guangzhou R&F Properties Co Ltd has increased its earnings per share (EPS) by an average of 58% a year, over the last three years It achieved revenue growth of 38% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Guangzhou R&F Properties Co Ltd Been A Good Investment?
I think that the total shareholder return of 101%, over three years, would leave most Guangzhou R&F Properties Co Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Guangzhou R&F Properties Co Ltd, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Guangzhou R&F Properties Co Ltd insiders are buying or selling shares.