Here's What We Think About Meilleure Health International Industry Group's (HKG:2327) CEO Pay

Wen Chuan Zhou became the CEO of Meilleure Health International Industry Group Limited (HKG:2327) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Meilleure Health International Industry Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Meilleure Health International Industry Group

Comparing Meilleure Health International Industry Group Limited's CEO Compensation With the industry

Our data indicates that Meilleure Health International Industry Group Limited has a market capitalization of HK$2.0b, and total annual CEO compensation was reported as HK$800k for the year to December 2019. We note that's an increase of 48% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$800k.

For comparison, other companies in the same industry with market capitalizations ranging between HK$775m and HK$3.1b had a median total CEO compensation of HK$2.4m. Accordingly, Meilleure Health International Industry Group pays its CEO under the industry median. What's more, Wen Chuan Zhou holds HK$15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 92% of total compensation represents salary and 7.7% is other remuneration. Speaking on a company level, Meilleure Health International Industry Group prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Meilleure Health International Industry Group Limited's Growth Numbers

Meilleure Health International Industry Group Limited has reduced its earnings per share by 53% a year over the last three years. It achieved revenue growth of 25% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Meilleure Health International Industry Group Limited Been A Good Investment?

Boasting a total shareholder return of 39% over three years, Meilleure Health International Industry Group Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Meilleure Health International Industry Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Wen Chuan is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, shareholder returns and revenues are growing at a good clip. On the flip side, EPS growth during the same period is negative. But all things considered, we believe shareholders will be happy with the performance, and that's why CEO compensation is appropriate in our opinion.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Meilleure Health International Industry Group that you should be aware of before investing.

Important note: Meilleure Health International Industry Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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