Jisheng Wang is the CEO of Fu Shou Yuan International Group Limited (HKG:1448). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jisheng Wang's Compensation Compare With Similar Sized Companies?
According to our data, Fu Shou Yuan International Group Limited has a market capitalization of HK$15b, and paid its CEO total annual compensation worth CN¥7.3m over the year to December 2018. We looked at a group of companies with market capitalizations from CN¥7.0b to CN¥22b, and the median CEO total compensation was CN¥3.9m.
Thus we can conclude that Jisheng Wang receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fu Shou Yuan International Group Limited. 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.
You can see, below, how CEO compensation at Fu Shou Yuan International Group has changed over time.
Is Fu Shou Yuan International Group Limited Growing?
Over the last three years Fu Shou Yuan International Group Limited has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). In the last year, its revenue is up 12%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Fu Shou Yuan International Group Limited Been A Good Investment?
Fu Shou Yuan International Group Limited has served shareholders reasonably well, with a total return of 30% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount Fu Shou Yuan International Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. So you may want to check if insiders are buying Fu Shou Yuan International Group shares with their own money (free access).
If you want to buy a stock that is better than Fu Shou Yuan International Group, this free list of high return, low debt companies is a great place to look.
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