In This Article:
The CEO of China Glass Holdings Limited (HKG:3300) is Xiangdong Cui. 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 China Glass Holdings
How Does Xiangdong Cui's Compensation Compare With Similar Sized Companies?
Our data indicates that China Glass Holdings Limited is worth HK$751m, and total annual CEO compensation was reported as CN¥1.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥818k. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.5m.
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.
The graphic below shows how CEO compensation at China Glass Holdings has changed from year to year.
Is China Glass Holdings Limited Growing?
China Glass Holdings Limited has increased its earnings per share (EPS) by an average of 86% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 9.6%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has China Glass Holdings Limited Been A Good Investment?
With a three year total loss of 52%, China Glass Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like China Glass Holdings Limited pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we don't think, Xiangdong Cui is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Shareholders may want to check for free if China Glass Holdings insiders are buying or selling shares.