In This Article:
In 2015 Sheng Ouyang was appointed CEO of China Yuanbang Property Holdings Limited (SGX:BCD). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for China Yuanbang Property Holdings
How Does Sheng Ouyang’s Compensation Compare With Similar Sized Companies?
Our data indicates that China Yuanbang Property Holdings Limited is worth S$24m, and total annual CEO compensation is CN¥663k. (This figure is for the year to 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at CN¥626k. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO compensation in that group is CN¥2.2m.
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 China Yuanbang Property Holdings, below.
Is China Yuanbang Property Holdings Limited Growing?
Earnings per share at China Yuanbang Property Holdings Limited are much the same as they were three years ago, albeit slightly lower. Its revenue is up 56% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Yuanbang Property Holdings Limited Been A Good Investment?
With a three year total loss of 10%, China Yuanbang Property Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
China Yuanbang Property Holdings Limited is currently paying its CEO below what is normal for companies of its size.
Sheng Ouyang is paid less than CEOs of similar size companies, but growth hasn’t been particularly impressive and the total shareholder return over three years would leave many disappointed. So while shareholders shouldn’t be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling China Yuanbang Property Holdings (free visualization of insider trades).