Is Yida China Holdings Limited's (HKG:3639) CEO Salary Justified?

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Xiuwen Jiang has been the CEO of Yida China Holdings Limited (HKG:3639) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Yida China Holdings

How Does Xiuwen Jiang's Compensation Compare With Similar Sized Companies?

Our data indicates that Yida China Holdings Limited is worth HK$5.2b, and total annual CEO compensation is CN¥4.0m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.8m. 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¥3.6m.

So Xiuwen Jiang receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

SEHK:3639 CEO Compensation, September 20th 2019
SEHK:3639 CEO Compensation, September 20th 2019

Is Yida China Holdings Limited Growing?

Over the last three years Yida China Holdings Limited has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is up 18%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Yida China Holdings Limited Been A Good Investment?

Given the total loss of 29% over three years, many shareholders in Yida China Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Xiuwen Jiang is paid around the same as most CEOs of similar size companies.

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Yida China Holdings (free visualization of insider trades).

If you want to buy a stock that is better than Yida China 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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