How Much is China Goldjoy Group Limited’s (HKG:1282) CEO Getting Paid?
Jianhui Yao became the CEO of China Goldjoy Group Limited (HKG:1282) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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 China Goldjoy Group
How Does Jianhui Yao’s Compensation Compare With Similar Sized Companies?
Our data indicates that China Goldjoy Group Limited is worth HK$11b, and total annual CEO compensation is HK$2.1m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at HK$1.5m. We examined companies with market caps from HK$7.8b to HK$25b, and discovered that the median CEO compensation of that group was HK$3.6m.
A first glance this seems like a real positive for shareholders, since Jianhui Yao is paid less than the average compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at China Goldjoy Group, below.
Is China Goldjoy Group Limited Growing?
China Goldjoy Group Limited has increased its earnings per share (EPS) by an average of 105% a year, over the last three years In the last year, its revenue is up 239%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Goldjoy Group Limited Been A Good Investment?
With a three year total loss of 57%, China Goldjoy Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
It looks like China Goldjoy Group Limited pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. So while we don’t think, Jianhui Yao is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. So you may want to check if insiders are buying China Goldjoy Group shares with their own money (free access).
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.
