Xin Min Yang is the CEO of Smartac Group China Holdings Limited (HKG:395). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Smartac Group China Holdings
How Does Xin Min Yang's Compensation Compare With Similar Sized Companies?
Our data indicates that Smartac Group China Holdings Limited is worth HK$806m, and total annual CEO compensation is CN¥1.4m. (This is based on the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥1.4m. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.7m.
That means Xin Min Yang receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Smartac Group China Holdings has changed from year to year.
Is Smartac Group China Holdings Limited Growing?
Smartac Group China Holdings Limited has increased its earnings per share (EPS) by an average of 66% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. 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 Smartac Group China Holdings Limited Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Smartac Group China Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Xin Min Yang is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Shareholders may want to check for free if Smartac Group China Holdings insiders are buying or selling shares.