In This Article:
Wei Zhang has been the CEO of Capital Finance Holdings Limited (HKG:8239) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Capital Finance Holdings
How Does Wei Zhang's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Capital Finance Holdings Limited has a market cap of HK$169m, and is paying total annual CEO compensation of HK$4.9m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$1.9m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.
Thus we can conclude that Wei Zhang receives more in total compensation than the median of a group of companies in the same market, and of similar size to Capital Finance Holdings Limited. However, this doesn't necessarily mean the pay 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 Capital Finance Holdings has changed over time.
Is Capital Finance Holdings Limited Growing?
Capital Finance Holdings Limited has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.6% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Capital Finance Holdings Limited Been A Good Investment?
Given the total loss of 56% over three years, many shareholders in Capital Finance Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Capital Finance 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.