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Does Shineco, Inc.'s (NASDAQ:TYHT) CEO Pay Reflect Performance?

The CEO of Shineco, Inc. (NASDAQ:TYHT) is Yuying Zhang. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Shineco

How Does Yuying Zhang's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Shineco, Inc. has a market cap of US$15m, and reported total annual CEO compensation of US$151k for the year to June 2019. That's just a smallish increase of 2.0% on last year. While we always look at total compensation first, we note that the salary component is less, at US$120k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$509k.

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Most shareholders would consider it a positive that Yuying Zhang 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 Shineco has changed from year to year.

NasdaqCM:TYHT CEO Compensation, October 23rd 2019
NasdaqCM:TYHT CEO Compensation, October 23rd 2019

Is Shineco, Inc. Growing?

Over the last three years Shineco, Inc. has shrunk its earnings per share by an average of 36% per year (measured with a line of best fit). It saw its revenue drop 29% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. 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 Shineco, Inc. Been A Good Investment?

With a three year total loss of 90%, Shineco, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like Shineco, Inc. pays its CEO less than similar sized companies.

Yuying Zhang is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Shareholders may want to check for free if Shineco insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.