The CEO of China Huirong Financial Holdings Limited (HKG:1290) is Min Wu. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for China Huirong Financial Holdings

How Does Min Wu's Compensation Compare With Similar Sized Companies?

Our data indicates that China Huirong Financial Holdings Limited is worth HK$1.1b, and total annual CEO compensation was reported as CN¥1.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥746k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.8m.

So Min Wu is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at China Huirong Financial Holdings has changed over time.

Is China Huirong Financial Holdings Limited Growing?

Over the last three years China Huirong Financial Holdings Limited has grown its earnings per share (EPS) by an average of 10% per year (using a line of best fit). Its revenue is up 49% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. 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 China Huirong Financial Holdings Limited Been A Good Investment?

I think that the total shareholder return of 65%, over three years, would leave most China Huirong Financial Holdings Limited shareholders smiling. 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.

In Summary...

Min Wu is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling China Huirong Financial Holdings shares (free trial).

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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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. Thank you for reading.