Hui-Chin Chiu became the CEO of Ju Teng International Holdings Limited (HKG:3336) in 2017. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Hui-Chin Chiu's Compensation Compare With Similar Sized Companies?
According to our data, Ju Teng International Holdings Limited has a market capitalization of HK$1.7b, and pays its CEO total annual compensation worth HK$4.9m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$3.8m. We looked at a group of companies with market capitalizations from HK$784m to HK$3.1b, and the median CEO total compensation was HK$2.3m.
As you can see, Hui-Chin Chiu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Ju Teng International Holdings Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Ju Teng International Holdings, below.
Is Ju Teng International Holdings Limited Growing?
Ju Teng International Holdings Limited has reduced its earnings per share by an average of 64% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 19%.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ju Teng International Holdings Limited Been A Good Investment?
With a three year total loss of 8.3%, Ju Teng International Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Ju Teng International Holdings Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ju Teng International Holdings (free visualization of insider trades).
Important note: Ju Teng International 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.
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