Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Robert Xu has been the CEO of Kingdee International Software Group Company Limited (HKG:268) since 2008. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Robert Xu's Compensation Compare With Similar Sized Companies?
Our data indicates that Kingdee International Software Group Company Limited is worth HK$26b, and total annual CEO compensation is CN¥13m. (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¥2.7m. When we examined a selection of companies with market caps ranging from CN¥14b to CN¥44b, we found the median CEO total compensation was CN¥3.2m.
As you can see, Robert Xu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kingdee International Software Group Company Limited is paying too much. 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 Kingdee International Software Group has changed over time.
Is Kingdee International Software Group Company Limited Growing?
Kingdee International Software Group Company Limited has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). Its revenue is up 22% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Kingdee International Software Group Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Kingdee International Software Group Company Limited for providing a total return of 220% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Kingdee International Software Group Company Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kingdee International Software Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.