Shynn Zhang has been the CEO of SOHO China Limited (HKG:410) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for SOHO China

How Does Shynn Zhang's Compensation Compare With Similar Sized Companies?

According to our data, SOHO China Limited has a market capitalization of HK$16b, and paid its CEO total annual compensation worth CN¥2.6m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.9m. We examined companies with market caps from CN¥7.0b to CN¥22b, and discovered that the median CEO total compensation of that group was CN¥4.0m.

A first glance this seems like a real positive for shareholders, since Shynn Zhang is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at SOHO China has changed from year to year.

Is SOHO China Limited Growing?

On average over the last three years, SOHO China Limited has grown earnings per share (EPS) by 1.6% each year (using a line of best fit). It achieved revenue growth of 1.1% over the last year.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.

Has SOHO China Limited Been A Good Investment?

SOHO China Limited has generated a total shareholder return of 3.2% 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...

SOHO China Limited is currently paying its CEO below what is normal for companies of its size.

Shynn Zhang receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SOHO China.

Important note: SOHO China may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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