In This Article:
Mingxiao Shao is the CEO of Longfor Group Holdings Limited (HKG:960). First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Longfor Group Holdings
How Does Mingxiao Shao's Compensation Compare With Similar Sized Companies?
Our data indicates that Longfor Group Holdings Limited is worth HK$238b, and total annual CEO compensation was reported as CN¥52m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥16m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations over CN¥56b and the median CEO total compensation was CN¥5.7m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Longfor Group Holdings, in sharp contrast to the overall sector.
It would therefore appear that Longfor Group Holdings Limited pays Mingxiao Shao more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. The graphic below shows how CEO compensation at Longfor Group Holdings has changed from year to year.
Is Longfor Group Holdings Limited Growing?
Over the last three years Longfor Group Holdings Limited has seen earnings per share (EPS) move in a positive direction by an average of 24% per year (using a line of best fit). Its revenue is up 30% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.