Lin-Chit Hui is the CEO of Hengan International Group Company Limited (HKG:1044). This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Hengan International Group

How Does Lin-Chit Hui's Compensation Compare With Similar Sized Companies?

According to our data, Hengan International Group Company Limited has a market capitalization of HK$79b, and paid its CEO total annual compensation worth CN¥1.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥679k. When we examined a group of companies with market caps over CN¥57b, we found that their median CEO total compensation was CN¥6.2m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Hengan International Group. On a sector level, around 47% of total compensation represents salary and 53% is other remuneration. Our data reveals that Hengan International Group allocates salary in line with the wider market.

At first glance this seems like a real positive for shareholders, since Lin-Chit Hui is paid less than the average total compensation paid by other large companies. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at Hengan International Group has changed from year to year.

Is Hengan International Group Company Limited Growing?

Hengan International Group Company Limited has seen earnings per share (EPS) move positively by an average of 4.3% a year, over the last three years (using a line of best fit). It achieved revenue growth of 9.6% over the last year.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has Hengan International Group Company Limited Been A Good Investment?

Hengan International Group Company Limited has served shareholders reasonably well, with a total return of 26% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

It appears that Hengan International Group Company Limited remunerates its CEO below most large companies.

Lin-Chit Hui receives relatively low remuneration compared to other large companies. But the company isn't exactly firing on all cylinders, from my perspective. But on this analysis I see no issue with the CEO compensation. Looking into other areas, we've picked out 1 warning sign for Hengan International Group that investors should think about before committing capital to this stock.

If you want to buy a stock that is better than Hengan International Group, this free list of high return, low debt companies is a great place to look.

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