Does Yashili International Holdings Ltd's (HKG:1230) CEO Pay Compare Well With Peers?
In 2017 Chopin Zhang was appointed CEO of Yashili International Holdings Ltd (HKG:1230). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Yashili International Holdings
How Does Chopin Zhang's Compensation Compare With Similar Sized Companies?
Our data indicates that Yashili International Holdings Ltd is worth HK$4.9b, and total annual CEO compensation is CN¥9.3m. (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 CN¥1.4m. When we examined a selection of companies with market caps ranging from CN¥2.8b to CN¥11b, we found the median CEO total compensation was CN¥3.0m.
Thus we can conclude that Chopin Zhang receives more in total compensation than the median of a group of companies in the same market, and of similar size to Yashili International Holdings Ltd. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Yashili International Holdings has changed from year to year.
Is Yashili International Holdings Ltd Growing?
Over the last three years Yashili International Holdings Ltd has shrunk its earnings per share by an average of 4.5% per year (measured with a line of best fit). In the last year, its revenue is up 34%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Yashili International Holdings Ltd Been A Good Investment?
With a three year total loss of 38%, Yashili International Holdings Ltd would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Yashili International Holdings Ltd 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Yashili International Holdings shares with their own money (free access).
If you want to buy a stock that is better than Yashili International Holdings, this free list of high return, low debt companies is a great place to look.
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.
