In This Article:
Shui Ding is the CEO of Xtep International Holdings Limited (HKG:1368). 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Xtep International Holdings
How Does Shui Ding's Compensation Compare With Similar Sized Companies?
According to our data, Xtep International Holdings Limited has a market capitalization of HK$12b, and pays its CEO total annual compensation worth CN¥957k. (This figure is for the year to December 2018). That's a fairly small increase of 0.4% on year before. Notably, the salary of CN¥939k is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from CN¥6.7b to CN¥21b, we found the median CEO total compensation was CN¥2.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 Xtep International Holdings, below.
Is Xtep International Holdings Limited Growing?
Xtep International Holdings Limited has reduced its earnings per share by an average of 6.8% a year, over the last three years (measured with a line of best fit). Its revenue is up 25% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Xtep International Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 34% over three years, Xtep International Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Xtep International Holdings Limited is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Shui Ding is paid less than most company leaders (at similar sized companies), there isn't much EPS growth. Having said that, returns to shareholders have been great. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Xtep International Holdings shares (free trial).