In This Article:
Zhixiang Zhang became the CEO of China Ruifeng Renewable Energy Holdings Limited (HKG:527) in 2010. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for China Ruifeng Renewable Energy Holdings
How Does Zhixiang Zhang's Compensation Compare With Similar Sized Companies?
Our data indicates that China Ruifeng Renewable Energy Holdings Limited is worth HK$747m, and total annual CEO compensation is CN¥3.0m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥2.3m. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.6m.
Thus we can conclude that Zhixiang Zhang receives more in total compensation than the median of a group of companies in the same market, and of similar size to China Ruifeng Renewable Energy Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at China Ruifeng Renewable Energy Holdings has changed over time.
Is China Ruifeng Renewable Energy Holdings Limited Growing?
Over the last three years China Ruifeng Renewable Energy Holdings Limited has grown its earnings per share (EPS) by an average of 37% per year (using a line of best fit). In the last year, its revenue is down -7.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Ruifeng Renewable Energy Holdings Limited Been A Good Investment?
Since shareholders would have lost about 41% over three years, some China Ruifeng Renewable Energy Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at China Ruifeng Renewable Energy Holdings Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.