Why Guorui Properties Limited's (HKG:2329) CEO Pay Matters To You
Zhangsun Zhang is the CEO of Guorui Properties Limited (HKG:2329). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Guorui Properties
How Does Zhangsun Zhang's Compensation Compare With Similar Sized Companies?
Our data indicates that Guorui Properties Limited is worth HK$6.8b, and total annual CEO compensation was reported as CN¥3.0m for the year to December 2018. Notably, the salary of CN¥3.0m is the vast majority of the CEO compensation. We examined companies with market caps from CN¥2.8b to CN¥11b, and discovered that the median CEO total compensation of that group was CN¥3.2m.
So Zhangsun Zhang receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Guorui Properties, below.
Is Guorui Properties Limited Growing?
Over the last three years Guorui Properties Limited has shrunk its earnings per share by an average of 8.8% per year (measured with a line of best fit). Its revenue is up 19% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Guorui Properties Limited Been A Good Investment?
Given the total loss of 27% over three years, many shareholders in Guorui Properties Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Zhangsun Zhang is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Guorui Properties (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.
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