Zhenyuan Xian became the CEO of China Tian Lun Gas Holdings Limited (HKG:1600) in 2015. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Zhenyuan Xian’s Compensation Compare With Similar Sized Companies?
Our data indicates that China Tian Lun Gas Holdings Limited is worth HK$9.2b, and total annual CEO compensation is CN¥515k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥480k. We looked at a group of companies with market capitalizations from CN¥2.7b to CN¥11b, and the median CEO compensation was CN¥2.8m.
Most shareholders would consider it a positive that Zhenyuan Xian takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at China Tian Lun Gas Holdings, below.
Is China Tian Lun Gas Holdings Limited Growing?
On average over the last three years, China Tian Lun Gas Holdings Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). It achieved revenue growth of 22% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has China Tian Lun Gas Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with China Tian Lun Gas Holdings Limited for providing a total return of 66% over three years. 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.
China Tian Lun Gas Holdings Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Zhenyuan Xian deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at China Tian Lun Gas Holdings.
If you want to buy a stock that is better than China Tian Lun Gas Holdings, this free list of high return, low debt companies is a great place to look.
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