Is Guorui Properties Limited's (HKG:2329) CEO Paid At A Competitive Rate?

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Zhangsun Zhang is the CEO of Guorui Properties Limited (HKG:2329). 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Guorui Properties

How Does Zhangsun Zhang's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Guorui Properties Limited has a market cap of HK$5.6b, and reported total annual CEO compensation of CN¥3.0m for the year to December 2019. Notably, the salary of CN¥3.0m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from CN¥2.8b to CN¥11b, we found the median CEO total compensation was CN¥3.7m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. On a company level, Guorui Properties prefers to reward its CEO through a salary, opting not to pay Zhangsun Zhang through non-salary benefits.

That means Zhangsun Zhang receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Guorui Properties has changed over time.

SEHK:2329 CEO Compensation May 18th 2020
SEHK:2329 CEO Compensation May 18th 2020

Is Guorui Properties Limited Growing?

Guorui Properties Limited has reduced its earnings per share by an average of 18% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 22%.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Guorui Properties Limited Been A Good Investment?

Given the total loss of 39% over three years, many shareholders in Guorui Properties Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.