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In 1998 Guoqiang Li was appointed CEO of Zhongsheng Group Holdings Limited (HKG:881). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Zhongsheng Group Holdings
How Does Guoqiang Li's Compensation Compare With Similar Sized Companies?
Our data indicates that Zhongsheng Group Holdings Limited is worth HK$41b, and total annual CEO compensation is CN¥14m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥5.2m. When we examined a selection of companies with market caps ranging from CN¥28b to CN¥83b, we found the median CEO total compensation was CN¥3.4m.
Thus we can conclude that Guoqiang Li receives more in total compensation than the median of a group of companies in the same market, and of similar size to Zhongsheng Group Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Zhongsheng Group Holdings has changed over time.
Is Zhongsheng Group Holdings Limited Growing?
On average over the last three years, Zhongsheng Group Holdings Limited has grown earnings per share (EPS) by 51% each year (using a line of best fit). Its revenue is up 25% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Zhongsheng Group Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 384% over three years, Zhongsheng Group 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...
We compared the total CEO remuneration paid by Zhongsheng Group Holdings Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.