In This Article:
Chun Pan is the CEO of Changmao Biochemical Engineering Company Limited (HKG:954). 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Changmao Biochemical Engineering
How Does Chun Pan's Compensation Compare With Similar Sized Companies?
Our data indicates that Changmao Biochemical Engineering Company Limited is worth HK$471m, and total annual CEO compensation is CN¥1.1m. (This figure is for the year to December 2018). We note that's an increase of 59% above last year. While we always look at total compensation first, we note that the salary component is less, at CN¥545k. We took a group of companies with market capitalizations below CN¥1.3b, and calculated the median CEO total compensation to be CN¥1.3m.
So Chun Pan receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Changmao Biochemical Engineering, below.
Is Changmao Biochemical Engineering Company Limited Growing?
On average over the last three years, Changmao Biochemical Engineering Company Limited has shrunk earnings per share by 26% each year (measured with a line of best fit). Its revenue is up 1.3% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Changmao Biochemical Engineering Company Limited Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Changmao Biochemical Engineering Company Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Chun Pan is paid around what is normal the leaders of comparable size companies.