In This Article:
Guoqiang Li has been the CEO of Zhongsheng Group Holdings Limited (HKG:881) since 1998. 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. 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 Zhongsheng Group Holdings
How Does Guoqiang Li’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Zhongsheng Group Holdings Limited has a market cap of HK$35b, and is paying total annual CEO compensation of CN¥14m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥5.2m. We examined companies with market caps from CN¥14b to CN¥45b, and discovered that the median CEO compensation of that group was CN¥3.3m.
As you can see, Guoqiang Li is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Zhongsheng Group Holdings Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Zhongsheng Group Holdings, below.
Is Zhongsheng Group Holdings Limited Growing?
Zhongsheng Group Holdings Limited has increased its earnings per share (EPS) by an average of 67% a year, over the last three years Its revenue is up 24% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Zhongsheng Group Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Zhongsheng Group Holdings Limited for providing a total return of 292% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Zhongsheng Group Holdings Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.