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In 2009, Hui Zhang was appointed CEO of Yantai North Andre Juice Company Limited (HKG:2218). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Yantai North Andre Juice
How Does Hui Zhang's Compensation Compare With Similar Sized Companies?
According to our data, Yantai North Andre Juice Company Limited has a market capitalization of HK$1.8b, and paid its CEO total annual compensation worth CN¥628k over the year to December 2019. Notably, that's an increase of 33% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at CN¥562k. We looked at a group of companies with market capitalizations from CN¥707m to CN¥2.8b, and the median CEO total compensation was CN¥2.1m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Yantai North Andre Juice does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
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, below, how CEO compensation at Yantai North Andre Juice has changed over time.
Is Yantai North Andre Juice Company Limited Growing?
On average over the last three years, Yantai North Andre Juice Company Limited has seen earnings per share (EPS) move in a favourable direction by 16% each year (using a line of best fit). It saw its revenue drop 21% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yantai North Andre Juice Company Limited Been A Good Investment?
Yantai North Andre Juice Company Limited has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.