In 2016 Shouchun Tang was appointed CEO of LVGEM (China) Real Estate Investment Company Limited (HKG:95). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for LVGEM (China) Real Estate Investment

How Does Shouchun Tang's Compensation Compare With Similar Sized Companies?

Our data indicates that LVGEM (China) Real Estate Investment Company Limited is worth HK$14b, and total annual CEO compensation is CN¥3.2m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥2.2m. We looked at a group of companies with market capitalizations from CN¥6.9b to CN¥22b, and the median CEO total compensation was CN¥3.6m.

So Shouchun Tang is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at LVGEM (China) Real Estate Investment, below.

Is LVGEM (China) Real Estate Investment Company Limited Growing?

Over the last three years LVGEM (China) Real Estate Investment Company Limited has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). Its revenue is up 52% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has LVGEM (China) Real Estate Investment Company Limited Been A Good Investment?

Most shareholders would probably be pleased with LVGEM (China) Real Estate Investment Company Limited for providing a total return of 48% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Shouchun Tang is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at LVGEM (China) Real Estate Investment.