Here's What We Learned About The CEO Pay At Holly Futures Co., Ltd. (HKG:3678)

This article will reflect on the compensation paid to Jianqiu Zhou who has served as CEO of Holly Futures Co., Ltd. (HKG:3678) since 2015. This analysis will also assess whether Holly Futures pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Holly Futures

How Does Total Compensation For Jianqiu Zhou Compare With Other Companies In The Industry?

According to our data, Holly Futures Co., Ltd. has a market capitalization of HK$689m, and paid its CEO total annual compensation worth CN¥543k over the year to December 2019. Notably, that's a decrease of 31% over the year before. We note that the salary portion, which stands at CN¥382.4k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.2m. That is to say, Jianqiu Zhou is paid under the industry median.

On an industry level, around 75% of total compensation represents salary and 25% is other remuneration. Our data reveals that Holly Futures allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Holly Futures Co., Ltd.'s Growth

Over the last three years, Holly Futures Co., Ltd. has shrunk its earnings per share by 28% per year. Its revenue is up 50% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Holly Futures Co., Ltd. Been A Good Investment?

With a three year total loss of 41% for the shareholders, Holly Futures Co., Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Holly Futures Co., Ltd. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But Holly Futures has recorded negative shareholder returns and EPS growth over the last three years. In contrast, revenues have increased more recently. Although it's fair to say CEO compensation is modest, shareholders might want to see healthier investor returns before thinking Jianqiu deserves a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Holly Futures (1 is significant!) that you should be aware of before investing here.

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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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