In This Article:
The CEO of Xtep International Holdings Limited (HKG:1368) is Shui Ding. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
Check out our latest analysis for Xtep International Holdings
How Does Shui Ding's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Xtep International Holdings Limited has a market cap of HK$11b, and reported total annual CEO compensation of CN¥957k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥939k. We looked at a group of companies with market capitalizations from CN¥7.1b to CN¥23b, and the median CEO total compensation was CN¥3.5m.
A first glance this seems like a real positive for shareholders, since Shui Ding is paid less than the average total compensation paid by similar sized companies. 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?
On average over the last three years, Xtep International Holdings Limited has grown earnings per share (EPS) by 7.1% each year (using a line of best fit). It achieved revenue growth of 27% over the last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! You might want to check this free visual report on analyst forecasts for future earnings.
Has Xtep International Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Xtep International Holdings Limited for providing a total return of 47% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It looks like Xtep International Holdings Limited pays its CEO less than similar sized companies.
It's well worth noting that while Shui Ding is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Xtep International Holdings (free visualization of insider trades).