In This Article:
The CEO of Hengan International Group Company Limited (HKG:1044) is Lin-Chit Hui. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
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View our latest analysis for Hengan International Group
How Does Lin-Chit Hui's Compensation Compare With Similar Sized Companies?
Our data indicates that Hengan International Group Company Limited is worth HK$75b, and total annual CEO compensation is CN¥1.3m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥662k. When we examined a selection of companies with market caps ranging from CN¥28b to CN¥83b, we found the median CEO total compensation was CN¥3.1m.
A first glance this seems like a real positive for shareholders, since Lin-Chit Hui is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Hengan International Group, below.
Is Hengan International Group Company Limited Growing?
Hengan International Group Company Limited has increased its earnings per share (EPS) by an average of 7.7% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hengan International Group Company Limited Been A Good Investment?
Hengan International Group Company Limited has generated a total shareholder return of 6.5% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
It appears that Hengan International Group Company Limited remunerates its CEO below most similar sized companies.
It's well worth noting that while Lin-Chit Hui is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hengan International Group (free visualization of insider trades).