Qi Shi became the CEO of Ta Yang Group Holdings Limited (HKG:1991) in 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Ta Yang Group Holdings

How Does Qi Shi's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Ta Yang Group Holdings Limited has a market cap of HK$235m, and reported total annual CEO compensation of HK$6.8m for the year to July 2018. While we always look at total compensation first, we note that the salary component is less, at HK$4.7m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

Thus we can conclude that Qi Shi receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ta Yang Group Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Ta Yang Group Holdings has changed over time.

Is Ta Yang Group Holdings Limited Growing?

Ta Yang Group Holdings Limited has increased its earnings per share (EPS) by an average of 49% a year, over the last three years (using a line of best fit). Its revenue is down 5.8% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Ta Yang Group Holdings Limited Been A Good Investment?

Given the total loss of 71% over three years, many shareholders in Ta Yang Group Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Ta Yang Group Holdings Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Ta Yang Group Holdings 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.

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.