In This Article:
Xinhua Liu became the CEO of Uni-President China Holdings Ltd (HKG:220) in 2016. 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. 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.
View our latest analysis for Uni-President China Holdings
How Does Xinhua Liu's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Uni-President China Holdings Ltd has a market cap of HK$34b, and reported total annual CEO compensation of CN¥3.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥1.3m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CN¥14b to CN¥45b, we found the median CEO total compensation was CN¥3.9m.
So Xinhua Liu receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Uni-President China Holdings has changed from year to year.
Is Uni-President China Holdings Ltd Growing?
Uni-President China Holdings Ltd has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). It achieved revenue growth of 2.6% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Uni-President China Holdings Ltd Been A Good Investment?
Boasting a total shareholder return of 56% over three years, Uni-President China Holdings Ltd has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Xinhua Liu is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Uni-President China Holdings insiders are buying or selling shares.