A Quick Analysis On Anxian Yuan China Holdings' (HKG:922) CEO Salary

Jun Shi became the CEO of Anxian Yuan China Holdings Limited (HKG:922) in 2014, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Anxian Yuan China Holdings.

See our latest analysis for Anxian Yuan China Holdings

How Does Total Compensation For Jun Shi Compare With Other Companies In The Industry?

According to our data, Anxian Yuan China Holdings Limited has a market capitalization of HK$334m, and paid its CEO total annual compensation worth HK$1.1m over the year to March 2020. That's a slightly lower by 5.4% over the previous year. In particular, the salary of HK$1.02m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.5m. From this we gather that Jun Shi is paid around the median for CEOs in the industry. Furthermore, Jun Shi directly owns HK$5.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8.4% of the pie. Our data reveals that Anxian Yuan China Holdings allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Anxian Yuan China Holdings Limited's Growth Numbers

Over the past three years, Anxian Yuan China Holdings Limited has seen its earnings per share (EPS) grow by 349% per year. Its revenue is up 47% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Anxian Yuan China Holdings Limited Been A Good Investment?

Since shareholders would have lost about 77% over three years, some Anxian Yuan China Holdings Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Jun is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Jun is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Anxian Yuan China Holdings (1 can't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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