Should You Be Pleased About The CEO Pay At Yestar Healthcare Holdings Company Limited's (HKG:2393)

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James Hartono is the CEO of Yestar Healthcare Holdings Company Limited (HKG:2393). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Yestar Healthcare Holdings

How Does James Hartono's Compensation Compare With Similar Sized Companies?

Our data indicates that Yestar Healthcare Holdings Company Limited is worth HK$3.4b, and total annual CEO compensation is CN¥4.4m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥3.2m. We looked at a group of companies with market capitalizations from CN¥1.4b to CN¥5.7b, and the median CEO total compensation was CN¥2.3m.

As you can see, James Hartono is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Yestar Healthcare Holdings Company 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.

The graphic below shows how CEO compensation at Yestar Healthcare Holdings has changed from year to year.

SEHK:2393 CEO Compensation, September 18th 2019
SEHK:2393 CEO Compensation, September 18th 2019

Is Yestar Healthcare Holdings Company Limited Growing?

Over the last three years Yestar Healthcare Holdings Company Limited has grown its earnings per share (EPS) by an average of 9.7% per year (using a line of best fit). In the last year, its revenue is up 12%.

I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Yestar Healthcare Holdings Company Limited Been A Good Investment?

Since shareholders would have lost about 61% over three years, some Yestar Healthcare Holdings Company 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...

We compared total CEO remuneration at Yestar Healthcare Holdings Company Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Yestar Healthcare Holdings (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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