Does Glorious Property Holdings Limited's (HKG:845) CEO Pay Matter?
Xiang Yang Ding has been the CEO of Glorious Property Holdings Limited (HKG:845) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Glorious Property Holdings
How Does Xiang Yang Ding's Compensation Compare With Similar Sized Companies?
According to our data, Glorious Property Holdings Limited has a market capitalization of HK$2.6b, and paid its CEO total annual compensation worth CN¥923k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥814k. We looked at a group of companies with market capitalizations from CN¥1.4b to CN¥5.7b, and the median CEO total compensation was CN¥2.2m.
A first glance this seems like a real positive for shareholders, since Xiang Yang Ding is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Glorious Property Holdings has changed from year to year.
Is Glorious Property Holdings Limited Growing?
Glorious Property Holdings Limited has increased its earnings per share (EPS) by an average of 72% a year, over the last three years (using a line of best fit). Its revenue is up 69% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Glorious Property Holdings Limited Been A Good Investment?
With a three year total loss of 61%, Glorious Property Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that Glorious Property Holdings Limited remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that Xiang Yang Ding is generously paid, it would be good to see an improvement in business performance before too an increase in pay. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Glorious Property Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
