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In 2016 Yan He Xu was appointed CEO of Shenzhen Neptunus Interlong Bio-technique Company Limited (HKG:8329). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Shenzhen Neptunus Interlong Bio-technique
How Does Yan He Xu's Compensation Compare With Similar Sized Companies?
Our data indicates that Shenzhen Neptunus Interlong Bio-technique Company Limited is worth HK$371m, and total annual CEO compensation was reported as CN¥501k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥401k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.5m.
Most shareholders would consider it a positive that Yan He Xu 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 Shenzhen Neptunus Interlong Bio-technique, below.
Is Shenzhen Neptunus Interlong Bio-technique Company Limited Growing?
Over the last three years, Shenzhen Neptunus Interlong Bio-technique Company Limited has not seen its earnings per share change much, though there is a positive trend. In the last year, its revenue is up 11%.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Shenzhen Neptunus Interlong Bio-technique Company Limited Been A Good Investment?
With a three year total loss of 62%, Shenzhen Neptunus Interlong Bio-technique Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Shenzhen Neptunus Interlong Bio-technique Company Limited is currently paying its CEO below what is normal for companies of its size.
Yan He Xu is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Shenzhen Neptunus Interlong Bio-technique (free visualization of insider trades).