How Much is Chinese People Holdings' (HKG:681) CEO Getting Paid?

This article will reflect on the compensation paid to Fangyi Fan who has served as CEO of Chinese People Holdings Company Limited (HKG:681) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Chinese People Holdings.

Check out our latest analysis for Chinese People Holdings

Comparing Chinese People Holdings Company Limited's CEO Compensation With the industry

According to our data, Chinese People Holdings Company Limited has a market capitalization of HK$447m, and paid its CEO total annual compensation worth CN¥885k over the year to March 2020. We note that's a decrease of 17% compared to last year. In particular, the salary of CN¥723.0k, makes up a huge portion of the total compensation being paid to 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. From this we gather that Fangyi Fan is paid around the median for CEOs in the industry. Moreover, Fangyi Fan also holds HK$1.1m worth of Chinese People Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. Our data reveals that Chinese People Holdings 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.

Chinese People Holdings Company Limited's Growth

Chinese People Holdings Company Limited has reduced its earnings per share by 5.6% a year over the last three years. In the last year, its revenue is down 4.6%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Chinese People Holdings Company Limited Been A Good Investment?

Given the total shareholder loss of 60% over three years, many shareholders in Chinese People Holdings Company Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Chinese People Holdings pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Chinese People Holdings that you should be aware of before investing.

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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