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Jinggang Shi has been the CEO of Changan Minsheng APLL Logistics Co., Ltd. (

HKG:1292

) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Changan Minsheng APLL Logistics

How Does Jinggang Shi’s Compensation Compare With Similar Sized Companies?

According to our data, Changan Minsheng APLL Logistics Co., Ltd. has a market capitalization of HK$692m, and pays its CEO total annual compensation worth CN¥594k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥328k. We took a group of companies with market capitalizations below CN¥1.3b, and calculated the median CEO compensation to be CN¥1.4m.

A first glance this seems like a real positive for shareholders, since Jinggang Shi is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Changan Minsheng APLL Logistics has changed over time.

SEHK:1292 CEO Compensation February 1st 19

Is Changan Minsheng APLL Logistics Co., Ltd. Growing?

Changan Minsheng APLL Logistics Co., Ltd. has reduced its earnings per share by an average of 28% a year, over the last three years. It saw its revenue drop -7.4% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out

this more detailed historical graph

of earnings, revenue and cash flow.

Has Changan Minsheng APLL Logistics Co., Ltd. Been A Good Investment?

With a three year total loss of 35%, Changan Minsheng APLL Logistics Co., Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Changan Minsheng APLL Logistics Co., Ltd. is currently paying its CEO below what is normal for companies of its size.

Story continues

Shareholders should note that compensation for Jinggang Shi is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. Considering all these factors, we’d stop short of saying the CEO pay is too high, but we don’t think shareholders would want to see a pay rise before business performance improves. CEO compensation is one thing, but it is also interesting to

check if the CEO is buying or selling Changan Minsheng APLL Logistics (free visualization of insider trades).

Or you could

feast your eyes

on

this

interactive graph

depicting past earnings, cash flow and revenue

.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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