Shareholders will be pleased by the robust performance of China Health Group Limited (HKG:673) recently and this will be kept in mind in the upcoming AGM on 30 September 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for China Health Group

How Does Total Compensation For Ho Chung Compare With Other Companies In The Industry?

According to our data, China Health Group Limited has a market capitalization of HK$672m, and paid its CEO total annual compensation worth HK$1.5m over the year to March 2022. That's a notable decrease of 18% on last year. Notably, the salary which is HK$1.20m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.2m. That is to say, Ho Chung is paid under the industry median.

On an industry level, around 80% of total compensation represents salary and 20% is other remuneration. China Health Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

China Health Group Limited's Growth

Over the past three years, China Health Group Limited has seen its earnings per share (EPS) grow by 32% per year. It achieved revenue growth of 22% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China Health Group Limited Been A Good Investment?

China Health Group Limited has served shareholders reasonably well, with a total return of 32% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is concerning) in China Health Group we think you should know about.

Important note: China Health Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.