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Yunxian Wang is the CEO of Xinchen China Power Holdings Limited (HKG:1148). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Xinchen China Power Holdings
How Does Yunxian Wang's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Xinchen China Power Holdings Limited has a market cap of HK$436m, and is paying total annual CEO compensation of CN¥2.7m. (This number is for the twelve months until December 2018). That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.7m. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.5m.
As you can see, Yunxian Wang is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Xinchen China Power Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Xinchen China Power Holdings has changed from year to year.
Is Xinchen China Power Holdings Limited Growing?
Xinchen China Power Holdings Limited has reduced its earnings per share by an average of 42% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 3.2%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Xinchen China Power Holdings Limited Been A Good Investment?
Given the total loss of 67% over three years, many shareholders in Xinchen China Power Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.