In This Article:
Xuguang Wang is the CEO of Haichang Ocean Park Holdings Ltd. (HKG:2255). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Haichang Ocean Park Holdings
How Does Xuguang Wang's Compensation Compare With Similar Sized Companies?
According to our data, Haichang Ocean Park Holdings Ltd. has a market capitalization of HK$4.0b, and paid its CEO total annual compensation worth CN¥1.9m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.5m. When we examined a selection of companies with market caps ranging from CN¥1.4b to CN¥5.6b, we found the median CEO total compensation was CN¥2.3m.
So Xuguang Wang is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Haichang Ocean Park Holdings has changed from year to year.
Is Haichang Ocean Park Holdings Ltd. Growing?
Haichang Ocean Park Holdings Ltd. has reduced its earnings per share by an average of 43% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 31%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Haichang Ocean Park Holdings Ltd. Been A Good Investment?
With a three year total loss of 46%, Haichang Ocean Park Holdings Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Xuguang Wang is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Haichang Ocean Park Holdings.