What Did Besunyen Holdings' (HKG:926) CEO Take Home Last Year?

The CEO of Besunyen Holdings Company Limited (HKG:926) is Yihong Zhao, and this article examines 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.

See our latest analysis for Besunyen Holdings

Comparing Besunyen Holdings Company Limited's CEO Compensation With the industry

Our data indicates that Besunyen Holdings Company Limited has a market capitalization of HK$495m, and total annual CEO compensation was reported as CN¥2.3m for the year to December 2019. We note that's a decrease of 23% compared to last year. We note that the salary portion, which stands at CN¥2.03m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.3m. Accordingly, our analysis reveals that Besunyen Holdings Company Limited pays Yihong Zhao north of the industry median. What's more, Yihong Zhao holds HK$4.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. There isn't a significant difference between Besunyen Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Besunyen Holdings Company Limited's Growth

Besunyen Holdings Company Limited's earnings per share (EPS) grew 83% per year over the last three years. It achieved revenue growth of 97% over the 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 EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Besunyen Holdings Company Limited Been A Good Investment?

With a three year total loss of 22% for the shareholders, Besunyen Holdings Company Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Yihong is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Yihong is earning a very handsome sum.

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. We did our research and spotted 2 warning signs for Besunyen Holdings that investors should look into moving forward.

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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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