Chin Shing Fu became the CEO of C Cheng Holdings Limited (HKG:1486) in 2013. 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 C Cheng Holdings

How Does Chin Shing Fu's Compensation Compare With Similar Sized Companies?

According to our data, C Cheng Holdings Limited has a market capitalization of HK$441m, and pays its CEO total annual compensation worth HK$13m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at HK$6.0m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

As you can see, Chin Shing Fu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean C Cheng Holdings 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 a visual representation of the CEO compensation at C Cheng Holdings, below.

Is C Cheng Holdings Limited Growing?

Over the last three years C Cheng Holdings Limited has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). It achieved revenue growth of 47% over the last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has C Cheng Holdings Limited Been A Good Investment?

Given the total loss of 16% over three years, many shareholders in C Cheng 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...

We compared total CEO remuneration at C Cheng Holdings Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling C Cheng 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.

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.