In This Article:
Qingbin Liu became the CEO of LUZHENG FUTURES Company Limited (HKG:1461) in 2016. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for LUZHENG FUTURES
How Does Qingbin Liu's Compensation Compare With Similar Sized Companies?
Our data indicates that LUZHENG FUTURES Company Limited is worth HK$872m, and total annual CEO compensation was reported as CN¥1.2m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥1.2m. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.6m.
That means Qingbin Liu receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at LUZHENG FUTURES has changed from year to year.
Is LUZHENG FUTURES Company Limited Growing?
LUZHENG FUTURES Company Limited has reduced its earnings per share by an average of 3.1% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 18% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. 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 LUZHENG FUTURES Company Limited Been A Good Investment?
Given the total loss of 35% over three years, many shareholders in LUZHENG FUTURES Company Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Qingbin Liu is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at LUZHENG FUTURES.