The CEO of China Greenland Broad Greenstate Group Company Limited (HKG:1253) is Zhengping Wu. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Zhengping Wu’s Compensation Compare With Similar Sized Companies?
According to our data, China Greenland Broad Greenstate Group Company Limited has a market capitalization of HK$1.6b, and pays its CEO total annual compensation worth CN¥1.1m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥960k. We looked at a group of companies with market capitalizations from CN¥706m to CN¥2.8b, and the median CEO total compensation was CN¥2.0m.
A first glance this seems like a real positive for shareholders, since Zhengping Wu is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at China Greenland Broad Greenstate Group has changed from year to year.
Is China Greenland Broad Greenstate Group Company Limited Growing?
Over the last three years China Greenland Broad Greenstate Group Company Limited has shrunk its earnings per share by an average of 18% per year (measured with a line of best fit). In the last year, its revenue is down -33%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has China Greenland Broad Greenstate Group Company Limited Been A Good Investment?
Given the total loss of 57% over three years, many shareholders in China Greenland Broad Greenstate Group Company Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
It looks like China Greenland Broad Greenstate Group Company Limited pays its CEO less than similar sized companies.
Shareholders should note that compensation for Zhengping Wu is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. Considering all these factors, we’d stop short of saying the CEO pay is too high, but we don’t think shareholders would want to see a pay rise before business performance improves. Shareholders may want to check for free if China Greenland Broad Greenstate Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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