In 2016 Zhouping Chen was appointed CEO of BeijingWest Industries International Limited (HKG:2339). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for BeijingWest Industries International

How Does Zhouping Chen's Compensation Compare With Similar Sized Companies?

According to our data, BeijingWest Industries International Limited has a market capitalization of HK$276m, and paid its CEO total annual compensation worth HK$2.2m over the year to December 2018. Notably, the salary of HK$2.1m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

So Zhouping Chen 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 BeijingWest Industries International has changed over time.

Is BeijingWest Industries International Limited Growing?

Over the last three years, BeijingWest Industries International Limited has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. In the last year, its revenue is down 30%.

Unfortunately there is a complete lack of earnings per share improvement, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has BeijingWest Industries International Limited Been A Good Investment?

Since shareholders would have lost about 73% over three years, some BeijingWest Industries International Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Zhouping Chen is close enough to the median pay for a CEO of a similar sized company .

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling BeijingWest Industries International (free visualization of insider trades).

Important note: BeijingWest Industries International may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.