Does Common Splendor International Health Industry Group Limited's (HKG:286) CEO Pay Matter?

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Jiong Xian Ye has been the CEO of Common Splendor International Health Industry Group Limited (HKG:286) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Common Splendor International Health Industry Group

How Does Jiong Xian Ye's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Common Splendor International Health Industry Group Limited has a market cap of HK$2.2b, and reported total annual CEO compensation of HK$478k for the year to December 2018. Notably, the salary of HK$460k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from HK$783m to HK$3.1b, and the median CEO total compensation was HK$2.3m.

Most shareholders would consider it a positive that Jiong Xian Ye takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Common Splendor International Health Industry Group, below.

SEHK:286 CEO Compensation, November 9th 2019
SEHK:286 CEO Compensation, November 9th 2019

Is Common Splendor International Health Industry Group Limited Growing?

On average over the last three years, Common Splendor International Health Industry Group Limited has shrunk earnings per share by 120% each year (measured with a line of best fit). In the last year, its revenue is down 29%.

Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Common Splendor International Health Industry Group Limited Been A Good Investment?

Since shareholders would have lost about 16% over three years, some Common Splendor International Health Industry Group Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.