Wen Zhou became the CEO of Meilleure Health International Industry Group Limited (HKG:2327) in 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Wen Zhou’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Meilleure Health International Industry Group Limited has a market cap of HK$4.3b, and is paying total annual CEO compensation of HK$540k. (This is based on the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$540k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$1.6b to HK$6.3b. The median total CEO compensation was HK$1.9m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Meilleure Health International Industry Group has changed from year to year.
Is Meilleure Health International Industry Group Limited Growing?
Meilleure Health International Industry Group Limited has increased its earnings per share (EPS) by an average of 63% a year, over the last three years (using a line of best fit). It achieved revenue growth of 37% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Meilleure Health International Industry Group Limited Been A Good Investment?
Most shareholders would probably be pleased with Meilleure Health International Industry Group Limited for providing a total return of 214% over three years. 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.
It looks like Meilleure Health International Industry Group Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Wen Zhou deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Meilleure Health International Industry Group.
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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