In 2017, Xiaochun Wang was appointed CEO of China Traditional Chinese Medicine Holdings Co. Limited (HKG:570). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for China Traditional Chinese Medicine Holdings
How Does Xiaochun Wang's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that China Traditional Chinese Medicine Holdings Co. Limited has a market cap of HK$18b, and reported total annual CEO compensation of CN¥2.2m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.1m. We examined companies with market caps from CN¥7.1b to CN¥23b, and discovered that the median CEO total compensation of that group was CN¥3.9m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where China Traditional Chinese Medicine Holdings stands. On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. China Traditional Chinese Medicine Holdings has gone down a largely traditional route, paying Xiaochun Wang a high salary, giving it preference as a compensation method to non-salary benefits.
At first glance this seems like a real positive for shareholders, since Xiaochun Wang is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at China Traditional Chinese Medicine Holdings has changed from year to year.
Is China Traditional Chinese Medicine Holdings Co. Limited Growing?
China Traditional Chinese Medicine Holdings Co. Limited has seen earnings per share (EPS) move positively by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 27%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has China Traditional Chinese Medicine Holdings Co. Limited Been A Good Investment?
Since shareholders would have lost about 20% over three years, some China Traditional Chinese Medicine Holdings Co. Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like China Traditional Chinese Medicine Holdings Co. Limited pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Xiaochun Wang receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for China Traditional Chinese Medicine 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.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
"traditional" - Google News
April 22, 2020 at 02:02PM
https://ift.tt/3eGYf6t
Does China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) CEO Pay Compare Well With Peers? - Yahoo Finance
"traditional" - Google News
https://ift.tt/36u1SIt
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Does China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) CEO Pay Compare Well With Peers? - Yahoo Finance"
Post a Comment