Jidong Zhao became the CEO of Yongsheng Advanced Materials Company Limited (HKG:3608) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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View our latest analysis for Yongsheng Advanced Materials
How Does Jidong Zhao's Compensation Compare With Similar Sized Companies?
According to our data, Yongsheng Advanced Materials Company Limited has a market capitalization of HK$1.3b, and pays its CEO total annual compensation worth CN¥3.7m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥457k. When we examined a selection of companies with market caps ranging from CN¥688m to CN¥2.8b, we found the median CEO total compensation was CN¥1.5m.
As you can see, Jidong Zhao is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Yongsheng Advanced Materials Company Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Yongsheng Advanced Materials has changed over time.
Is Yongsheng Advanced Materials Company Limited Growing?
Yongsheng Advanced Materials Company Limited has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). It achieved revenue growth of 5.0% over the last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Yongsheng Advanced Materials Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Yongsheng Advanced Materials Company Limited for providing a total return of 61% over three years. 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.
We examined the amount Yongsheng Advanced Materials Company Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Yongsheng Advanced Materials shares with their own money (free access).
Important note: Yongsheng Advanced Materials may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.