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Is China Conch Venture Holdings Limited's (HKG:586) CEO Overpaid Relative To Its Peers?

Simply Wall St

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The CEO of China Conch Venture Holdings Limited (HKG:586) is Qinying Ji. 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.

Check out our latest analysis for China Conch Venture Holdings

How Does Qinying Ji's Compensation Compare With Similar Sized Companies?

Our data indicates that China Conch Venture Holdings Limited is worth HK$49b, and total annual CEO compensation is CN¥1.0m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥195k. We looked at a group of companies with market capitalizations from CN¥28b to CN¥83b, and the median CEO total compensation was CN¥4.3m.

A first glance this seems like a real positive for shareholders, since Qinying Ji is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at China Conch Venture Holdings has changed over time.

SEHK:586 CEO Compensation, July 17th 2019

Is China Conch Venture Holdings Limited Growing?

China Conch Venture Holdings Limited has increased its earnings per share (EPS) by an average of 45% a year, over the last three years (using a line of best fit). It achieved revenue growth of 40% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.

Has China Conch Venture Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with China Conch Venture Holdings Limited for providing a total return of 95% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

China Conch Venture Holdings Limited is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Qinying Ji deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at China Conch Venture Holdings.

Important note: China Conch Venture Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.