In 2007 Shynn Zhang was appointed CEO of SOHO China Limited (HKG:410). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

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View our latest analysis for SOHO China

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

Our data indicates that SOHO China Limited is worth HK$13b, and total annual CEO compensation is CN¥3.1m. (This is based on the year to December 2018). That's a notable increase of 42% on last year. While we always look at total compensation first, we note that the salary component is less, at CN¥1.9m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥6.9b to CN¥22b. The median total CEO compensation was CN¥3.2m.

That means Shynn Zhang receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at SOHO China has changed from year to year.

Is SOHO China Limited Growing?

SOHO China Limited has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It saw its revenue drop -12% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has SOHO China Limited Been A Good Investment?

SOHO China Limited has generated a total shareholder return of 9.1% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Shynn Zhang is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying SOHO China shares with their own money (free access).

If you want to buy a stock that is better than SOHO China, this free list of high return, low debt companies is a great place to look.

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.