The CEO of Yi Hua Holdings Limited (HKG:2213) is Xinpei Fan. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Yi Hua Holdings

How Does Xinpei Fan's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Yi Hua Holdings Limited has a market cap of HK$381m, and is paying total annual CEO compensation of CN¥1.2m. (This figure is for the year to December 2018). Notably, the salary of CN¥1.2m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.7m.

That means Xinpei Fan receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Yi Hua Holdings has changed from year to year.

Is Yi Hua Holdings Limited Growing?

Over the last three years Yi Hua Holdings Limited has shrunk its earnings per share by an average of 96% per year (measured with a line of best fit). It achieved revenue growth of 2.5% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Yi Hua Holdings Limited Been A Good Investment?

With a three year total loss of 75%, Yi Hua Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Xinpei Fan is close enough to the median pay for a CEO of a similar sized company .

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Yi Hua Holdings shares with their own money (free access).