Key Insights
- China Chunlai Education Group will host its Annual General Meeting on 10th of January
- Total pay for CEO Jie Zhang includes CN¥1.46m salary
- The total compensation is 42% less than the average for the industry
- China Chunlai Education Group's EPS grew by 8.6% over the past three years while total shareholder return over the past three years was 140%
The decent performance at China Chunlai Education Group Co., Ltd. (HKG:1969) recently will please most shareholders as they go into the AGM coming up on 10th of January. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
View our latest analysis for China Chunlai Education Group
How Does Total Compensation For Jie Zhang Compare With Other Companies In The Industry?
Our data indicates that China Chunlai Education Group Co., Ltd. has a market capitalization of HK$5.1b, and total annual CEO compensation was reported as CN¥1.5m for the year to August 2024. That's a modest increase of 4.1% on the prior year. In particular, the salary of CN¥1.46m, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Hong Kong Consumer Services industry with market capitalizations ranging between HK$3.1b and HK$12b had a median total CEO compensation of CN¥2.6m. That is to say, Jie Zhang is paid under the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥1.5m | CN¥1.5m | 96% |
| Other | CN¥66k | - | 4% |
| Total Compensation | CN¥1.5m | CN¥1.5m | 100% |
On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. China Chunlai Education Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at China Chunlai Education Group Co., Ltd.'s Growth Numbers
China Chunlai Education Group Co., Ltd. has seen its earnings per share (EPS) increase by 8.6% a year over the past three years. In the last year, its revenue is up 8.9%.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. 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?
We think that the total shareholder return of 140%, over three years, would leave most China Chunlai Education Group Co., Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
China Chunlai Education Group pays its CEO a majority of compensation through a salary. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for China Chunlai Education Group that investors should look into moving forward.
Switching gears from China Chunlai Education Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.