In This Article:
Yuan Zhang has been the CEO of Nanjing Sinolife United Company Limited (HKG:3332) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Nanjing Sinolife United
How Does Yuan Zhang's Compensation Compare With Similar Sized Companies?
Our data indicates that Nanjing Sinolife United Company Limited is worth HK$132m, and total annual CEO compensation was reported as CN¥812k for the year to December 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥243k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. Readers will want to know that Nanjing Sinolife United pays a modest slice of remuneration through salary, as compared to the wider sector.
At first glance this seems like a real positive for shareholders, since Yuan Zhang is paid less than the average total compensation paid by similar sized companies. 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 Nanjing Sinolife United, below.
Is Nanjing Sinolife United Company Limited Growing?
Over the last three years Nanjing Sinolife United Company Limited has shrunk its earnings per share by an average of 116% per year (measured with a line of best fit). In the last year, its revenue is down 29%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.