Jiameng Zhang has been the CEO of XPD Soccer Gear Group Limited (
ASX:XPD
) since 2005. This get your teach on controversy deanna jumpanalysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for XPD Soccer Gear Group
How Does Jiameng Zhang’s Compensation Compare With Similar Sized Companies?
Our data indicates that XPD Soccer Gear Group Limited is worth AU$10m, and total annual CEO compensation is AU$153k. (This figure is for the year to 2016). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at AU$129k. We examined a group of similar sized companies, with market capitalizations of below AU$284m. The median CEO compensation in that group is AU$368k.
A first glance this seems like a real positive for shareholders, since Jiameng Zhang 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 a visual representation of the CEO compensation at XPD Soccer Gear Group, below.
ASX:XPD CEO Compensation January 2nd 19
Is XPD Soccer Gear Group Limited Growing?
On average over the last three years, XPD Soccer Gear Group Limited has shrunk earnings per share by 50% each year. It saw its revenue drop -17% over the last year.
Sadly for shareholders, earnings per share are actually down, over 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 XPD Soccer Gear Group Limited Been A Good Investment?
Since shareholders would have lost about 87% over three years, some XPD Soccer Gear Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
It appears that XPD Soccer Gear Group Limited remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for Jiameng Zhang is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Whatever your view on compensation, you might want to
check if insiders are buying or selling XPD Soccer Gear Group shares (free trial).
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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
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