Yahoo Finance Is China Parenting Network Holdings Limited's (HKG:1736) CEO Paid Enough Relative To Peers?
The CEO of China Parenting Network Holdings Limited (HKG:1736) is Li Cheng. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for China Parenting Network Holdings
How Does Li Cheng's Compensation Compare With Similar Sized Companies?
According to our data, China Parenting Network Holdings Limited has a market capitalization of HK$308m, and pays its CEO total annual compensation worth CN¥565k. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥526k. We examined a group of similar sized companies, with market capitalizations of below CN¥1.3b. The median CEO total compensation in that group is CN¥1.3m.
Most shareholders would consider it a positive that Li Cheng takes less total 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.
The graphic below shows how CEO compensation at China Parenting Network Holdings has changed from year to year.
Is China Parenting Network Holdings Limited Growing?
On average over the last three years, China Parenting Network Holdings Limited has shrunk earnings per share by 8.2% each year (measured with a line of best fit). In the last year, its revenue is up 20%.
Sadly for shareholders, earnings per share are actually down, 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has China Parenting Network Holdings Limited Been A Good Investment?
With a three year total loss of 88%, China Parenting Network Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
China Parenting Network Holdings Limited is currently paying its CEO below what is normal for companies of its size.
The compensation paid to Li Cheng is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Shareholders may want to check for free if China Parenting Network Holdings insiders are buying or selling shares.
If you want to buy a stock that is better than China Parenting Network Holdings, this free list of high return, low debt companies is a great place to look.
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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.
