Jianming Zhang has been the CEO of Haitian International Holdings Limited (HKG:1882) since 2000, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also assess whether Haitian International Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Haitian International Holdings Limited’s CEO Compensation With the industry
According to our data, Haitian International Holdings Limited has a market capitalization of HK$29b, and paid its CEO total annual compensation worth CN¥866k over the year to December 2019. That’s mostly flat as compared to the prior year’s compensation. Notably, the salary which is CN¥830.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the industry with market capitalizations between HK$16b and HK$50b, we discovered that the median CEO total compensation of that group was CN¥7.3m. Accordingly, Haitian International Holdings pays its CEO under the industry median. Furthermore, Jianming Zhang directly owns HK$75m worth of shares in the company, implying that they are deeply invested in the company’s success.
Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Haitian International Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.
A Look at Haitian International Holdings Limited’s Growth Numbers
Over the past three years, Haitian International Holdings Limited has seen its earnings per share (EPS) grow by 4.1% per year. Its revenue is down 9.6% over the previous year.
We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It’s hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Haitian International Holdings Limited Been A Good Investment?
Given the total shareholder loss of 13% over three years, many shareholders in Haitian International Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Haitian International Holdings pays its CEO a majority of compensation through a salary. As we touched on above, Haitian International Holdings Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company isn’t growing and total shareholder returns have been disappointing. So while we don’t think, Jianming is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Haitian International Holdings (free visualization of insider trades).
Switching gears from Haitian International Holdings, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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