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Hao Jiang Zheng became the CEO of Sparkle Roll Group Limited (HKG:970) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Sparkle Roll Group
How Does Hao Jiang Zheng's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sparkle Roll Group Limited has a market cap of HK$1.3b, and is paying total annual CEO compensation of HK$2.0m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at HK$15k. We examined companies with market caps from HK$784m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.0m.
So Hao Jiang Zheng is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Sparkle Roll Group, below.
Is Sparkle Roll Group Limited Growing?
On average over the last three years, Sparkle Roll Group Limited has grown earnings per share (EPS) by 129% each year (using a line of best fit). It achieved revenue growth of 14% over the 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Sparkle Roll Group Limited Been A Good Investment?
Since shareholders would have lost about 40% over three years, some Sparkle Roll Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Hao Jiang Zheng is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sparkle Roll Group (free visualization of insider trades).