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 evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Wen Chuan Zhou Compare With Other Companies In The Industry?
According to our data, Meilleure Health International Industry Group Limited has a market capitalization of HK$1.4b, and paid its CEO total annual compensation worth HK$800k over the year to December 2019. Notably, that's an increase of 48% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$800k.
In comparison with other companies in the industry with market capitalizations ranging from HK$775m to HK$3.1b, the reported median CEO total compensation was HK$2.4m. That is to say, Wen Chuan Zhou is paid under the industry median. Furthermore, Wen Chuan Zhou directly owns HK$11m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 92% of total compensation represents salary and 8.1% 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
Over the last three years, Meilleure Health International Industry Group Limited has shrunk its earnings per share by 53% per year. Its revenue is up 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Meilleure Health International Industry Group Limited Been A Good Investment?
Meilleure Health International Industry Group Limited has generated a total shareholder return of 6.5% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
Meilleure Health International Industry Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Meilleure Health International Industry Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And revenue growth for the company is showing some positive trends.And revenues are growing at a healthy clip.And revenues are increasing at a good pace over the past year. But we were hoping for higher shareholder returns and positive EPS growth during this stretch, which, unfortunately, did not materialize. We won't say CEO compensation is inappropriate, but shareholders will likely want to see healthier returns before they agree the company deserves a raise.
Whatever your view on compensation, you might want to check if insiders are buying or selling Meilleure Health International Industry Group shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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