U.S. Markets closed

Does Jiashili Group Limited's (HKG:1285) CEO Pay Reflect Performance?

Simply Wall St

The CEO of Jiashili Group Limited (HKG:1285) is Chaojun Tan. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Jiashili Group

How Does Chaojun Tan's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Jiashili Group Limited has a market cap of HK$689m, and reported total annual CEO compensation of CN¥973k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥668k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 Jiashili Group, below.

SEHK:1285 CEO Compensation, January 13th 2020

Is Jiashili Group Limited Growing?

On average over the last three years, Jiashili Group Limited has grown earnings per share (EPS) by 4.8% each year (using a line of best fit). It achieved revenue growth of 21% over the last year.

I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Jiashili Group Limited Been A Good Investment?

With a three year total loss of 29%, Jiashili Group 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 Jiashili Group Limited remunerates its CEO below most similar sized companies.

It's well worth noting that while Chaojun Tan is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jiashili Group.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. Thank you for reading.