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Zhouping Chen became the CEO of BeijingWest Industries International Limited (HKG:2339) in 2016. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for BeijingWest Industries International
How Does Zhouping Chen's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BeijingWest Industries International Limited has a market cap of HK$494m, and is paying total annual CEO compensation of HK$2.2m. (This is based on the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$2.1m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.5m.
It would therefore appear that BeijingWest Industries International Limited pays Zhouping Chen 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at BeijingWest Industries International, below.
Is BeijingWest Industries International Limited Growing?
Over the last three years BeijingWest Industries International Limited has shrunk its earnings per share by an average of 45% per year (measured with a line of best fit). Its revenue is down -12% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has BeijingWest Industries International Limited Been A Good Investment?
Since shareholders would have lost about 60% over three years, some BeijingWest Industries International Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.