How Is Yantai North Andre Juice's (HKG:2218) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Hui Zhang who has served as CEO of Yantai North Andre Juice Company Limited (HKG:2218) since 2009. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Yantai North Andre Juice.

Check out our latest analysis for Yantai North Andre Juice

Comparing Yantai North Andre Juice Company Limited's CEO Compensation With the industry

Our data indicates that Yantai North Andre Juice Company Limited has a market capitalization of HK$9.5b, and total annual CEO compensation was reported as CN¥628k for the year to December 2019. That's a notable increase of 33% on last year. Notably, the salary which is CN¥562.2k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was CN¥3.7m. Accordingly, Yantai North Andre Juice pays its CEO under the industry median.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. According to our research, Yantai North Andre Juice has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Yantai North Andre Juice Company Limited's Growth Numbers

Over the past three years, Yantai North Andre Juice Company Limited has seen its earnings per share (EPS) grow by 20% per year. It achieved revenue growth of 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Yantai North Andre Juice Company Limited Been A Good Investment?

Boasting a total shareholder return of 123% over three years, Yantai North Andre Juice Company Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As previously discussed, Hui is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Hui's performance.

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 2 warning signs for Yantai North Andre Juice that investors should think about before committing capital to this stock.

Important note: Yantai North Andre Juice is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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