How Much is Tianyun International Holdings' (HKG:6836) CEO Getting Paid?

Ziyuan Yang became the CEO of Tianyun International Holdings Limited (HKG:6836) in 2011, and we think it's a good time to look at 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.

Check out our latest analysis for Tianyun International Holdings

Comparing Tianyun International Holdings Limited's CEO Compensation With the industry

Our data indicates that Tianyun International Holdings Limited has a market capitalization of HK$1.4b, and total annual CEO compensation was reported as CN¥1.9m for the year to December 2019. We note that's an increase of 36% above last year. Notably, the salary which is CN¥1.74m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from HK$775m to HK$3.1b, we found that the median CEO total compensation was CN¥1.5m. From this we gather that Ziyuan Yang is paid around the median for CEOs in the industry. Moreover, Ziyuan Yang also holds HK$275m worth of Tianyun International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. It's interesting to note that Tianyun International Holdings pays out a greater portion of remuneration through salary, compared to the 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 Tianyun International Holdings Limited's Growth Numbers

Tianyun International Holdings Limited's earnings per share (EPS) grew 7.0% per year over the last three years. In the last year, its revenue is down 5.0%.

We would prefer it if there was revenue growth, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Tianyun International Holdings Limited Been A Good Investment?

Tianyun International Holdings Limited has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Ziyuan is compensated close to the median for companies of its size, and which belong to the same industry. But the company has failed to produce substantial growth in either EPS or total shareholder return. So, although the CEO compensation seems reasonable, shareholders might want to see some further progress before they agree that Ziyuan should get a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Tianyun International Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Tianyun International Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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