Xinghao Li is the CEO of Chigo Holding Limited (HKG:449). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Chigo Holding
How Does Xinghao Li's Compensation Compare With Similar Sized Companies?
According to our data, Chigo Holding Limited has a market capitalization of HK$388m, and paid its CEO total annual compensation worth CN¥362k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥362k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Chigo Holding has changed from year to year.
Is Chigo Holding Limited Growing?
Over the last three years Chigo Holding Limited has shrunk its earnings per share by an average of 74% per year (measured with a line of best fit). Its revenue is down 33% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-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 Chigo Holding Limited Been A Good Investment?
Since shareholders would have lost about 60% over three years, some Chigo Holding 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...
It looks like Chigo Holding Limited pays its CEO less than similar sized companies.
Xinghao Li is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Shareholders may want to check for free if Chigo Holding insiders are buying or selling shares.