In This Article:
In 2017 Shulan Qin was appointed CEO of New Concepts Holdings Limited (HKG:2221). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for New Concepts Holdings
How Does Shulan Qin's Compensation Compare With Similar Sized Companies?
Our data indicates that New Concepts Holdings Limited is worth HK$269m, and total annual CEO compensation was reported as HK$1.4m for the year to March 2019. That's a notable increase of 106% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$681k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
So Shulan Qin receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at New Concepts Holdings has changed over time.
Is New Concepts Holdings Limited Growing?
New Concepts Holdings Limited has reduced its earnings per share by an average of 97% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 10% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has New Concepts Holdings Limited Been A Good Investment?
With a three year total loss of 82%, New Concepts Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Shulan Qin is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. So shareholders might not feel great about the fact that CEO pay increased on last year. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at New Concepts Holdings.