Zhou Jason has been the CEO of New Century Healthcare Holding Co. Limited (HKG:1518) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Zhou Jason's Compensation Compare With Similar Sized Companies?
Our data indicates that New Century Healthcare Holding Co. Limited is worth HK$1.3b, and total annual CEO compensation was reported as CN¥2.0m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.0m. When we examined a selection of companies with market caps ranging from CN¥689m to CN¥2.8b, we found the median CEO total compensation was CN¥2.0m.
So Zhou Jason receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at New Century Healthcare Holding, below.
Is New Century Healthcare Holding Co. Limited Growing?
New Century Healthcare Holding Co. Limited has reduced its earnings per share by an average of 44% a year, over the last three years (measured with a line of best fit). Its revenue is up 22% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has New Century Healthcare Holding Co. Limited Been A Good Investment?
Since shareholders would have lost about 64% over three years, some New Century Healthcare Holding Co. Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Zhou Jason is paid around what is normal the leaders of comparable size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying New Century Healthcare Holding shares with their own money (free access).
If you want to buy a stock that is better than New Century Healthcare Holding, this free list of high return, low debt companies is a great place to look.
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