Our Take On Huan Yue Interactive Holdings Limited's (HKG:505) CEO Salary
In 2014 Minglie Hu was appointed CEO of Huan Yue Interactive Holdings Limited (HKG:505). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Huan Yue Interactive Holdings
How Does Minglie Hu's Compensation Compare With Similar Sized Companies?
Our data indicates that Huan Yue Interactive Holdings Limited is worth HK$545m, 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¥1.2m. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.6m.
So Minglie Hu receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Huan Yue Interactive Holdings has changed over time.
Is Huan Yue Interactive Holdings Limited Growing?
Over the last three years Huan Yue Interactive Holdings Limited has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). It saw its revenue drop 13% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Huan Yue Interactive Holdings Limited Been A Good Investment?
Given the total loss of 27% over three years, many shareholders in Huan Yue Interactive Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Minglie Hu is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if Huan Yue Interactive Holdings insiders are buying or selling shares.
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.
