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Chenyang Cai became the CEO of China Putian Food Holding Limited (HKG:1699) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 China Putian Food Holding
How Does Chenyang Cai's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Putian Food Holding Limited has a market cap of HK$708m, and is paying total annual CEO compensation of CN¥3.2m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥247k. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.5m.
As you can see, Chenyang Cai is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean China Putian Food Holding 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, below, how CEO compensation at China Putian Food Holding has changed over time.
Is China Putian Food Holding Limited Growing?
China Putian Food Holding Limited has reduced its earnings per share by an average of 70% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -3.7%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Putian Food Holding Limited Been A Good Investment?
Given the total loss of 13% over three years, many shareholders in China Putian Food Holding Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.