What Can We Learn About XiDeLang Holdings' (KLSE:XDL) CEO Compensation?
Mark Ding became the CEO of XiDeLang Holdings Ltd (KLSE:XDL) in 2009, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for XiDeLang Holdings.
View our latest analysis for XiDeLang Holdings
How Does Total Compensation For Mark Ding Compare With Other Companies In The Industry?
At the time of writing, our data shows that XiDeLang Holdings Ltd has a market capitalization of RM148m, and reported total annual CEO compensation of CN„1.1m for the year to June 2020. That is, the compensation was roughly the same as last year. Notably, the salary which is CN„847.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under RM813m, the reported median total CEO compensation was CN„719k. Hence, we can conclude that Mark Ding is remunerated higher than the industry median.
| Component | 2020 | 2018 | Proportion (2020) |
| Salary | CN„847k | CN„582k | 78% |
| Other | CN„234k | CN„508k | 22% |
| Total Compensation | CN„1.1m | CN„1.1m | 100% |
On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. There isn't a significant difference between XiDeLang Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at XiDeLang Holdings Ltd's Growth Numbers
XiDeLang Holdings Ltd's earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is down 9.7%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 XiDeLang Holdings Ltd Been A Good Investment?
With a three year total loss of 54% for the shareholders, XiDeLang Holdings Ltd would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Mark is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but shareholder returns â over the same period â have been disappointing. Although we'd stop short of calling it inappropriate, we think Mark is earning a very handsome sum.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for XiDeLang Holdings that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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About KLSE:XDL
XiDeLang Holdings
An investment holding company, designs, manufactures, and markets sports shoes primarily in the Peoplesâ Republic of China.
Flawless balance sheet low.
