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Is China Tian Lun Gas Holdings Limited (HKG:1600) Excessively Paying Its CEO?

Simply Wall St

Zhenyuan Xian has been the CEO of China Tian Lun Gas Holdings Limited (HKG:1600) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for China Tian Lun Gas Holdings

How Does Zhenyuan Xian's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that China Tian Lun Gas Holdings Limited has a market cap of HK$7.7b, and is paying total annual CEO compensation of CN¥661k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥600k. We looked at a group of companies with market capitalizations from CN¥2.8b to CN¥11b, and the median CEO total compensation was CN¥3.8m.

Most shareholders would consider it a positive that Zhenyuan Xian 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, below, how CEO compensation at China Tian Lun Gas Holdings has changed over time.

SEHK:1600 CEO Compensation, September 13th 2019

Is China Tian Lun Gas Holdings Limited Growing?

On average over the last three years, China Tian Lun Gas Holdings Limited has grown earnings per share (EPS) by 32% each year (using a line of best fit). Its revenue is up 81% over last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has China Tian Lun Gas Holdings Limited Been A Good Investment?

China Tian Lun Gas Holdings Limited has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It looks like China Tian Lun Gas Holdings Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Zhenyuan Xian is paid too much.

Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling China Tian Lun Gas Holdings shares (free trial).

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.