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Should You Worry About China Maple Leaf Educational Systems Limited's (HKG:1317) CEO Pay?

Simply Wall St

Sherman Jen became the CEO of China Maple Leaf Educational Systems Limited (HKG:1317) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for China Maple Leaf Educational Systems

How Does Sherman Jen's Compensation Compare With Similar Sized Companies?

Our data indicates that China Maple Leaf Educational Systems Limited is worth HK$7.9b, and total annual CEO compensation is CN¥3.6m. (This figure is for the year to August 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥3.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.8m.

So Sherman Jen 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, below, how CEO compensation at China Maple Leaf Educational Systems has changed over time.

SEHK:1317 CEO Compensation, September 16th 2019

Is China Maple Leaf Educational Systems Limited Growing?

Over the last three years China Maple Leaf Educational Systems Limited has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). Its revenue is up 18% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has China Maple Leaf Educational Systems Limited Been A Good Investment?

Since shareholders would have lost about 20% over three years, some China Maple Leaf Educational Systems Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Sherman Jen is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling China Maple Leaf Educational Systems shares (free trial).

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 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. Thank you for reading.