How Is Guangdong Join-Share Financing Guarantee Investment's (HKG:1543) CEO Paid Relative To Peers?

The CEO of Guangdong Join-Share Financing Guarantee Investment Co., Ltd. (HKG:1543) is Liejin Wu, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Guangdong Join-Share Financing Guarantee Investment pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Guangdong Join-Share Financing Guarantee Investment

How Does Total Compensation For Liejin Wu Compare With Other Companies In The Industry?

Our data indicates that Guangdong Join-Share Financing Guarantee Investment Co., Ltd. has a market capitalization of HK$2.0b, and total annual CEO compensation was reported as CN¥3.1m for the year to December 2019. Notably, that's an increase of 12% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥517k.

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 CN¥1.7m. Accordingly, our analysis reveals that Guangdong Join-Share Financing Guarantee Investment Co., Ltd. pays Liejin Wu north of the industry median. What's more, Liejin Wu holds HK$42m 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, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. In Guangdong Join-Share Financing Guarantee Investment's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s Growth

Over the last three years, Guangdong Join-Share Financing Guarantee Investment Co., Ltd. has shrunk its earnings per share by 10% per year. It achieved revenue growth of 3.4% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Been A Good Investment?

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. has not done too badly by shareholders, with a total return of 1.0%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As we touched on above, Guangdong Join-Share Financing Guarantee Investment Co., Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS has not been growing sufficiently to impress us, over the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don't think the CEO is underpaid.

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 Guangdong Join-Share Financing Guarantee Investment that investors should think about before committing capital to this stock.

Switching gears from Guangdong Join-Share Financing Guarantee Investment, 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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