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Yong Huang became the CEO of Fire Rock Holdings Limited (HKG:8345) in 1970. 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. 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.

See our latest analysis for Fire Rock Holdings

How Does Yong Huang's Compensation Compare With Similar Sized Companies?

Our data indicates that Fire Rock Holdings Limited is worth HK$1.9b, and total annual CEO compensation is CN¥538k. (This number is for the twelve months until December 2018). We note that's an increase of 38% above last year. We think total compensation is more important but we note that the CEO salary is lower, at CN¥395k. We examined companies with market caps from CN¥690m to CN¥2.8b, and discovered that the median CEO total compensation of that group was CN¥1.7m.

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.

You can see a visual representation of the CEO compensation at Fire Rock Holdings, below.

Is Fire Rock Holdings Limited Growing?

On average over the last three years, Fire Rock Holdings Limited has grown earnings per share (EPS) by 61% each year (using a line of best fit). In the last year, its revenue is up 83%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Fire Rock Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Fire Rock Holdings Limited for providing a total return of 140% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Fire Rock Holdings Limited is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Yong Huang deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Fire Rock Holdings shares with their own money (free access).

If you want to buy a stock that is better than Fire Rock Holdings, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.