Wen Zhou has been the CEO of Meilleure Health International Industry Group Limited (HKG:2327) since 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Meilleure Health International Industry Group

How Does Wen Zhou’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Meilleure Health International Industry Group Limited has a market cap of HK$1.5b, and is paying total annual CEO compensation of HK$540k. (This number is for the twelve months until 2017). Notably, the salary of HK$540k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$781m to HK$3.1b. The median total CEO compensation was HK$2.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Meilleure Health International Industry Group, below.

Is Meilleure Health International Industry Group Limited Growing?

Over the last three years Meilleure Health International Industry Group Limited has grown its earnings per share (EPS) by an average of 63% per year. Its revenue is up 37% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

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 Meilleure Health International Industry Group Limited Been A Good Investment?

With a total shareholder return of 31% over three years, Meilleure Health International Industry Group Limited shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

It appears that Meilleure Health International Industry Group Limited remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that Wen Zhou is paid too much.

It’s great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Meilleure Health International Industry Group (free visualization of insider trades).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.