Cunyou Chen is the CEO of Xiezhong International Holdings Limited (HKG:3663). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Xiezhong International Holdings
How Does Cunyou Chen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Xiezhong International Holdings Limited has a market cap of HK$1.2b, and reported total annual CEO compensation of CN¥495k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥222k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥690m to CN¥2.8b. The median total CEO compensation was CN¥2.0m.
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.
You can see, below, how CEO compensation at Xiezhong International Holdings has changed over time.
Is Xiezhong International Holdings Limited Growing?
Xiezhong International Holdings Limited has reduced its earnings per share by an average of 104% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 51% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Xiezhong International Holdings Limited Been A Good Investment?
With a three year total loss of 39%, Xiezhong International 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...
Xiezhong International Holdings Limited is currently paying its CEO below what is normal for companies of its size.
Cunyou Chen is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Shareholders may want to check for free if Xiezhong International Holdings insiders are buying or selling shares.