In 2010, Jun Sun was appointed CEO of Guangdong Tannery Limited (HKG:1058). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Guangdong Tannery

How Does Jun Sun's Compensation Compare With Similar Sized Companies?

According to our data, Guangdong Tannery Limited has a market capitalization of HK$180m, and paid its CEO total annual compensation worth HK$819k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$641k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 89% of total compensation represents salary and 11% is other remuneration. Guangdong Tannery is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

At first glance this seems like a real positive for shareholders, since Jun Sun is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at Guangdong Tannery has changed over time.

Is Guangdong Tannery Limited Growing?

Guangdong Tannery Limited has seen earnings per share (EPS) move positively by an average of 1.4% a year, over the last three years (using a line of best fit). It saw its revenue drop 25% over the last year.

I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Guangdong Tannery Limited Been A Good Investment?

Given the total loss of 73% over three years, many shareholders in Guangdong Tannery Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.