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Zonghong Ou has been the CEO of Ronshine China Holdings Limited (HKG:3301) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Ronshine China Holdings

How Does Zonghong Ou's Compensation Compare With Similar Sized Companies?

According to our data, Ronshine China Holdings Limited has a market capitalization of HK$20b, and pays its CEO total annual compensation worth CN¥1.5m. (This number is for the twelve months until December 2017). Notably, the salary of CN¥1.5m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from CN¥13b to CN¥43b, we found the median CEO total compensation was CN¥2.6m.

Most shareholders would consider it a positive that Zonghong Ou takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Ronshine China Holdings has changed over time.

Is Ronshine China Holdings Limited Growing?

Ronshine China Holdings Limited has increased its earnings per share (EPS) by an average of 3.6% a year, over the last three years (using a line of best fit). It achieved revenue growth of 13% over the last year.

I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.

Has Ronshine China Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 117% over three years, Ronshine China Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Ronshine China Holdings Limited is currently paying its CEO below what is normal for companies of its size.

Zonghong Ou receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ronshine China Holdings.

Important note: Ronshine China Holdings 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.

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.