How Should Investors Feel About China Haida Ltd.'s (SGX:C92) CEO Pay?
Youcai Xu is the CEO of China Haida Ltd. (SGX:C92). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for China Haida
How Does Youcai Xu's Compensation Compare With Similar Sized Companies?
According to our data, China Haida Ltd. has a market capitalization of S$2.8m, and paid its CEO total annual compensation worth CN¥239k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥84k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined a group of similar sized companies, with market capitalizations of below S$270m. The median CEO total compensation in that group is S$468k.
Most shareholders would consider it a positive that Youcai Xu takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at China Haida, below.
Is China Haida Ltd. Growing?
China Haida Ltd. has reduced its earnings per share by an average of 69% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 4.5% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Haida Ltd. Been A Good Investment?
Since shareholders would have lost about 31% over three years, some China Haida Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that China Haida Ltd. remunerates its CEO below most similar sized companies.
The compensation paid to Youcai Xu is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. So you may want to check if insiders are buying China Haida shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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