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Is China Putian Food Holding Limited's (HKG:1699) CEO Overpaid Relative To Its Peers?

Simply Wall St

Chenyang Cai has been the CEO of China Putian Food Holding Limited (HKG:1699) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for China Putian Food Holding

How Does Chenyang Cai's Compensation Compare With Similar Sized Companies?

Our data indicates that China Putian Food Holding Limited is worth HK$548m, and total annual CEO compensation was reported as CN¥884k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥403k. 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 Chenyang Cai takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at China Putian Food Holding, below.

SEHK:1699 CEO Compensation, November 14th 2019

Is China Putian Food Holding Limited Growing?

China Putian Food Holding Limited has reduced its earnings per share by an average of 53% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 1.5% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has China Putian Food Holding Limited Been A Good Investment?

Given the total loss of 37% over three years, many shareholders in China Putian Food Holding Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like China Putian Food Holding Limited pays its CEO less than similar sized companies.

The compensation paid to Chenyang Cai is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Shareholders may want to check for free if China Putian Food Holding insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.