How Much Did Greenland Hong Kong Holdings Limited's (HKG:337) CEO Pocket Last Year?

In this article:

Jun Chen has been the CEO of Greenland Hong Kong Holdings Limited (HKG:337) since 2013. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Greenland Hong Kong Holdings

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

At the time of writing our data says that Greenland Hong Kong Holdings Limited has a market cap of HK$7.5b, and is paying total annual CEO compensation of CN¥6.9m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥4.7m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.2m.

It would therefore appear that Greenland Hong Kong Holdings Limited pays Jun Chen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Greenland Hong Kong Holdings has changed over time.

SEHK:337 CEO Compensation, August 20th 2019
SEHK:337 CEO Compensation, August 20th 2019

Is Greenland Hong Kong Holdings Limited Growing?

On average over the last three years, Greenland Hong Kong Holdings Limited has grown earnings per share (EPS) by 57% each year (using a line of best fit). In the last year, its revenue is up 5.6%.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Greenland Hong Kong Holdings Limited Been A Good Investment?

Greenland Hong Kong Holdings Limited has generated a total shareholder return of 31% over three years, so most shareholders would 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...

We compared total CEO remuneration at Greenland Hong Kong Holdings Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Greenland Hong Kong Holdings.

If you want to buy a stock that is better than Greenland Hong Kong Holdings, this free list of high return, low debt companies is a great place to look.

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.

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