Yong Huang became the CEO of Fire Rock Holdings Limited (HKG:1909) in 2015. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Fire Rock Holdings

How Does Yong Huang's Compensation Compare With Similar Sized Companies?

Our data indicates that Fire Rock Holdings Limited is worth HK$1.4b, and total annual CEO compensation was reported as CN¥538k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥395k. We examined companies with market caps from CN¥699m to CN¥2.8b, and discovered that the median CEO total compensation of that group was CN¥2.1m.

Most shareholders would consider it a positive that Yong Huang takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Fire Rock Holdings, below.

Is Fire Rock Holdings Limited Growing?

Fire Rock Holdings Limited has increased its earnings per share (EPS) by an average of 60% a year, over the last three years (using a line of best fit). It achieved revenue growth of 80% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Fire Rock Holdings Limited Been A Good Investment?

I think that the total shareholder return of 277%, over three years, would leave most Fire Rock Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Fire Rock Holdings Limited is currently paying its CEO below what is normal for companies of its size.

Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Yong Huang deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Fire Rock Holdings (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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