Bizhuang Zhang has been the CEO of Shengli Oil & Gas Pipe Holdings Limited (HKG:1080) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Shengli Oil & Gas Pipe Holdings

How Does Bizhuang Zhang's Compensation Compare With Similar Sized Companies?

Our data indicates that Shengli Oil & Gas Pipe Holdings Limited is worth HK$262m, and total annual CEO compensation is CN¥3.1m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥1.3m. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.7m.

It would therefore appear that Shengli Oil & Gas Pipe Holdings Limited pays Bizhuang Zhang more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Shengli Oil & Gas Pipe Holdings, below.

Is Shengli Oil & Gas Pipe Holdings Limited Growing?

Shengli Oil & Gas Pipe Holdings Limited has increased its earnings per share (EPS) by an average of 39% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -58%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Shengli Oil & Gas Pipe Holdings Limited Been A Good Investment?

Since shareholders would have lost about 75% over three years, some Shengli Oil & Gas Pipe Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Shengli Oil & Gas Pipe Holdings Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Shengli Oil & Gas Pipe Holdings insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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.