Does Health and Happiness (H&H) International Holdings Limited’s (HKG:1112) CEO Pay Compare Well With Peers?

The CEO of Health and Happiness (H&H) International Holdings Limited (HKG:1112) is Fei Luo. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Health and Happiness (H&H) International Holdings

How Does Fei Luo’s Compensation Compare With Similar Sized Companies?

According to our data, Health and Happiness (H&H) International Holdings Limited has a market capitalization of HK$31b, and pays its CEO total annual compensation worth CN¥9.6m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥5.8m. We looked at a group of companies with market capitalizations from CN¥13b to CN¥43b, and the median CEO total compensation was CN¥2.6m.

It would therefore appear that Health and Happiness (H&H) International Holdings Limited pays Fei Luo more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Health and Happiness (H&H) International Holdings has changed over time.

SEHK:1112 CEO Compensation, March 17th 2019
SEHK:1112 CEO Compensation, March 17th 2019

Is Health and Happiness (H&H) International Holdings Limited Growing?

Health and Happiness (H&H) International Holdings Limited has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). Its revenue is up 29% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.

Has Health and Happiness (H&H) International Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Health and Happiness (H&H) International Holdings Limited for providing a total return of 88% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared total CEO remuneration at Health and Happiness (H&H) International Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Health and Happiness (H&H) International Holdings shares with their own money (free access).

If you want to buy a stock that is better than Health and Happiness (H&H) International Holdings, this free list of high return, low debt companies is a great place to look.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.