In This Article:
Jixiong Ke is the CEO of Youyuan International Holdings Limited (HKG:2268). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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 Youyuan International Holdings
How Does Jixiong Ke’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Youyuan International Holdings Limited has a market cap of HK$2.9b, and is paying total annual CEO compensation of CN¥1.0m. (This figure is for the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥1.0m. When we examined a selection of companies with market caps ranging from CN¥1.3b to CN¥5.4b, we found the median CEO total compensation was CN¥1.7m.
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 a visual representation of the CEO compensation at Youyuan International Holdings, below.
Is Youyuan International Holdings Limited Growing?
Youyuan International Holdings Limited has increased its earnings per share (EPS) by an average of 58% a year, over the last three years (using a line of best fit). It achieved revenue growth of 78% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Youyuan International Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 49% over three years, Youyuan International Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
It appears that Youyuan International Holdings Limited remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Jixiong Ke deserves a raise!