In This Article:
Guanlin Huang is the CEO of Shenzhou International Group Holdings Limited (HKG:2313). First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. 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.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
See our latest analysis for Shenzhou International Group Holdings
How Does Guanlin Huang's Compensation Compare With Similar Sized Companies?
Our data indicates that Shenzhou International Group Holdings Limited is worth HK$153b, and total annual CEO compensation is CN¥1.5m. (This number is for the twelve months until December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥1.4m. When we examined a group of companies with market caps over CN¥55b, we found that their median CEO total compensation was CN¥3.4m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Most shareholders would consider it a positive that Guanlin Huang takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Shenzhou International Group Holdings has changed from year to year.
Is Shenzhou International Group Holdings Limited Growing?
On average over the last three years, Shenzhou International Group Holdings Limited has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Shenzhou International Group Holdings Limited Been A Good Investment?
I think that the total shareholder return of 191%, over three years, would leave most Shenzhou International Group Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Shenzhou International Group Holdings Limited remunerates its CEO below most large companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Guanlin Huang deserves a raise!