Key Insights

• China Chunlai Education Group will host its Annual General Meeting on 19th of January
• CEO Jie Zhang's total compensation includes salary of CN¥1.47m
• Total compensation is 38% below industry average
• Over the past three years, China Chunlai Education Group's EPS grew by 69% and over the past three years, the total shareholder return was 329%

The solid performance at China Chunlai Education Group Co., Ltd. (HKG:1969) has been impressive and shareholders will probably be pleased to know that CEO Jie Zhang has delivered. At the upcoming AGM on 19th of January, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for China Chunlai Education Group

Comparing China Chunlai Education Group Co., Ltd.'s CEO Compensation With The Industry

Our data indicates that China Chunlai Education Group Co., Ltd. has a market capitalization of HK$6.7b, and total annual CEO compensation was reported as CN¥1.5m for the year to August 2023. That is, the compensation was roughly the same as last year. Notably, the salary of CN¥1.5m is the entirety of the CEO compensation.

On examining similar-sized companies in the Hong Kong Consumer Services industry with market capitalizations between HK$3.1b and HK$13b, we discovered that the median CEO total compensation of that group was CN¥2.4m. Accordingly, China Chunlai Education Group pays its CEO under the industry median.

Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. Speaking on a company level, China Chunlai Education Group prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at China Chunlai Education Group Co., Ltd.'s Growth Numbers

China Chunlai Education Group Co., Ltd.'s earnings per share (EPS) grew 69% per year over the last three years. It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has China Chunlai Education Group Co., Ltd. Been A Good Investment?

Boasting a total shareholder return of 329% over three years, China Chunlai Education Group Co., Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

China Chunlai Education Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for China Chunlai Education Group that investors should think about before committing capital to this stock.

Important note: China Chunlai Education 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.