Here's What We Think About CCID Consulting Company Limited's (HKG:8235) CEO Pay
Huifeng Sun became the CEO of CCID Consulting Company Limited (HKG:8235) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for CCID Consulting
How Does Huifeng Sun's Compensation Compare With Similar Sized Companies?
According to our data, CCID Consulting Company Limited has a market capitalization of HK$287m, and paid its CEO total annual compensation worth CN¥1.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥684k. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.6m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where CCID Consulting stands. On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. CCID Consulting does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
So Huifeng Sun 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 CCID Consulting, below.
Is CCID Consulting Company Limited Growing?
On average over the last three years, CCID Consulting Company Limited has seen earnings per share (EPS) move in a favourable direction by 63% each year (using a line of best fit). Its revenue is up 44% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. 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 CCID Consulting Company Limited Been A Good Investment?
CCID Consulting Company Limited has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Huifeng Sun is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for CCID Consulting that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
