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In 2013 Xin Ji was appointed CEO of CHTC Fong's International Company Limited (HKG:641). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for CHTC Fong's International
How Does Xin Ji's Compensation Compare With Similar Sized Companies?
Our data indicates that CHTC Fong's International Company Limited is worth HK$770m, and total annual CEO compensation is HK$5.0m. (This number is for the twelve months until December 2018). Notably, the salary of HK$4.9m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.7m.
It would therefore appear that CHTC Fong's International Company Limited pays Xin Ji more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at CHTC Fong's International has changed over time.
Is CHTC Fong's International Company Limited Growing?
On average over the last three years, CHTC Fong's International Company Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). Its revenue is up 2.0% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has CHTC Fong's International Company Limited Been A Good Investment?
Since shareholders would have lost about 59% over three years, some CHTC Fong's International Company Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.