The CEO of Bamboos Health Care Holdings Limited (HKG:2293) is Winsome Hai. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Winsome Hai's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bamboos Health Care Holdings Limited has a market cap of HK$404m, and reported total annual CEO compensation of HK$2.3m for the year to June 2019. Notably, that's an increase of 26% over the year before. While we always look at total compensation first, we note that the salary component is less, at HK$1.8m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.
So Winsome Hai receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Bamboos Health Care Holdings has changed from year to year.
Is Bamboos Health Care Holdings Limited Growing?
Over the last three years Bamboos Health Care Holdings Limited has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). It saw its revenue drop 4.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bamboos Health Care Holdings Limited Been A Good Investment?
With a three year total loss of 17%, Bamboos Health Care Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Winsome Hai is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bamboos Health Care Holdings.
If you want to buy a stock that is better than Bamboos Health Care Holdings, this free list of high return, low debt companies is a great place to look.
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