Should You Worry About Shirble Department Store Holdings (China) Limited's (HKG:312) CEO Pay Cheque?

In this article:

Ti Wei Yang became the CEO of Shirble Department Store Holdings (China) Limited (HKG:312) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Shirble Department Store Holdings (China)

How Does Ti Wei Yang's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Shirble Department Store Holdings (China) Limited has a market cap of HK$2.9b, and reported total annual CEO compensation of CN¥2.7m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥2.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥1.4b to CN¥5.6b. The median total CEO compensation was CN¥2.6m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Shirble Department Store Holdings (China) stands. Talking in terms of the sector, salary represented approximately 87% of total compensation out of all the companies we analysed, while other remuneration made up 13% of the pie. Shirble Department Store Holdings (China) is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

So Ti Wei Yang receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see a visual representation of the CEO compensation at Shirble Department Store Holdings (China), below.

SEHK:312 CEO Compensation April 12th 2020
SEHK:312 CEO Compensation April 12th 2020

Is Shirble Department Store Holdings (China) Limited Growing?

Over the last three years Shirble Department Store Holdings (China) Limited has seen earnings per share (EPS) move in a positive direction by an average of 38% per year (using a line of best fit). It saw its revenue drop 23% over the last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shirble Department Store Holdings (China) Limited Been A Good Investment?

Most shareholders would probably be pleased with Shirble Department Store Holdings (China) Limited for providing a total return of 109% 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...

Ti Wei Yang is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Looking into other areas, we've picked out 1 warning sign for Shirble Department Store Holdings (China) that investors should think about before committing capital to this stock.

Important note: Shirble Department Store Holdings (China) may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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