The CEO of Yixin Group Limited (HKG:2858) is Andy Xuan, and this article examines 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 Andy Xuan Compare With Other Companies In The Industry?
According to our data, Yixin Group Limited has a market capitalization of HK$12b, and paid its CEO total annual compensation worth CN¥78m over the year to December 2019. Notably, that's a decrease of 45% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥3.5m.
In comparison with other companies in the industry with market capitalizations ranging from HK$7.8b to HK$25b, the reported median CEO total compensation was CN¥6.2m. Accordingly, our analysis reveals that Yixin Group Limited pays Andy Xuan north of the industry median.
Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Yixin Group paid Andy Xuan a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Yixin Group Limited's Growth
Over the past three years, Yixin Group Limited has seen its earnings per share (EPS) grow by 121% per year. In the last year, its revenue is down 44%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Yixin Group Limited Been A Good Investment?
Given the total shareholder loss of 76% over three years, many shareholders in Yixin Group Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
Yixin Group primarily uses non-salary benefits to reward its CEO. As we noted earlier, Yixin Group pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Andy is underpaid, in fact compensation is definitely on the higher side.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Yixin Group.
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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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