Key Insights
- Tiande Chemical Holdings will host its Annual General Meeting on 7th of June
- CEO Xiaohua Chen's total compensation includes salary of CN¥656.0k
- Total compensation is similar to the industry average
- Over the past three years, Tiande Chemical Holdings' EPS grew by 30% and over the past three years, the total shareholder return was 128%
It would be hard to discount the role that CEO Xiaohua Chen has played in delivering the impressive results at Tiande Chemical Holdings Limited (HKG:609) recently. Coming up to the next AGM on 7th of June, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
See our latest analysis for Tiande Chemical Holdings
Comparing Tiande Chemical Holdings Limited's CEO Compensation With The Industry
According to our data, Tiande Chemical Holdings Limited has a market capitalization of HK$1.1b, and paid its CEO total annual compensation worth CN¥1.2m over the year to December 2023. That's a fairly small increase of 7.9% over the previous year. Notably, the salary which is CN¥656.0k, represents a considerable chunk of the total compensation being paid.
On comparing similar-sized companies in the Hong Kong Chemicals industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.4m. From this we gather that Xiaohua Chen is paid around the median for CEOs in the industry. Furthermore, Xiaohua Chen directly owns HK$3.2m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | CN¥656k | CN¥525k | 56% |
| Other | CN¥513k | CN¥558k | 44% |
| Total Compensation | CN¥1.2m | CN¥1.1m | 100% |
Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. Tiande Chemical Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Tiande Chemical Holdings Limited's Growth
Tiande Chemical Holdings Limited has seen its earnings per share (EPS) increase by 30% a year over the past three years. It saw its revenue drop 41% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tiande Chemical Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Tiande Chemical Holdings Limited for providing a total return of 128% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Tiande Chemical Holdings that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.