Here's What We Think About Labixiaoxin Snacks Group Limited's (HKG:1262) CEO Pay
Yu Shuang Zheng is the CEO of Labixiaoxin Snacks Group Limited (HKG:1262). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Labixiaoxin Snacks Group
How Does Yu Shuang Zheng's Compensation Compare With Similar Sized Companies?
Our data indicates that Labixiaoxin Snacks Group Limited is worth HK$399m, and total annual CEO compensation was reported as CN¥800k for the year to December 2018. Notably, the salary of CN¥800k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.5m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Labixiaoxin Snacks Group has changed over time.
Is Labixiaoxin Snacks Group Limited Growing?
Over the last three years Labixiaoxin Snacks Group Limited has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). In the last year, its revenue is down 36%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Labixiaoxin Snacks Group Limited Been A Good Investment?
With a three year total loss of 36%, Labixiaoxin Snacks Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Labixiaoxin Snacks Group Limited is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Yu Shuang Zheng receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Labixiaoxin Snacks Group.
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.
