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Yaxian Zhou is the CEO of Shenguan Holdings (Group) Limited (HKG:829). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Shenguan Holdings (Group)
How Does Yaxian Zhou's Compensation Compare With Similar Sized Companies?
Our data indicates that Shenguan Holdings (Group) Limited is worth HK$1.1b, and total annual CEO compensation is CN¥3.9m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥3.0m. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.5m.
Thus we can conclude that Yaxian Zhou receives more in total compensation than the median of a group of companies in the same market, and of similar size to Shenguan Holdings (Group) Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Shenguan Holdings (Group) has changed over time.
Is Shenguan Holdings (Group) Limited Growing?
Over the last three years Shenguan Holdings (Group) Limited has shrunk its earnings per share by an average of 53% per year (measured with a line of best fit). It saw its revenue drop -11% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. 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 Shenguan Holdings (Group) Limited Been A Good Investment?
With a three year total loss of 37%, Shenguan Holdings (Group) Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.