Key Insights

• Joincare Pharmaceutical Group IndustryLtd's Annual General Meeting to take place on 7th of June
• Salary of CN¥2.60m is part of CEO Xiong Yu's total remuneration
• Total compensation is 92% above industry average
• Joincare Pharmaceutical Group IndustryLtd's EPS grew by 7.1% over the past three years while total shareholder loss over the past three years was 9.8%

In the past three years, shareholders of Joincare Pharmaceutical Group Industry Co.,Ltd. (SHSE:600380) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 7th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing Joincare Pharmaceutical Group Industry Co.,Ltd.'s CEO Compensation With The Industry

Our data indicates that Joincare Pharmaceutical Group Industry Co.,Ltd. has a market capitalization of CN¥23b, and total annual CEO compensation was reported as CN¥3.6m for the year to December 2023. There was no change in the compensation compared to last year. We note that the salary portion, which stands at CN¥2.60m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Chinese Pharmaceuticals industry with market caps ranging from CN¥14b to CN¥46b, we found that the median CEO total compensation was CN¥1.9m. Hence, we can conclude that Xiong Yu is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 26% of total compensation out of all the companies we analyzed, while other remuneration made up 74% of the pie. Joincare Pharmaceutical Group IndustryLtd is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Joincare Pharmaceutical Group Industry Co.,Ltd.'s Growth

Over the past three years, Joincare Pharmaceutical Group Industry Co.,Ltd. has seen its earnings per share (EPS) grow by 7.1% per year. It saw its revenue drop 3.6% over the last year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Joincare Pharmaceutical Group Industry Co.,Ltd. Been A Good Investment?

Given the total shareholder loss of 9.8% over three years, many shareholders in Joincare Pharmaceutical Group Industry Co.,Ltd. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Joincare Pharmaceutical Group IndustryLtd.

Switching gears from Joincare Pharmaceutical Group IndustryLtd, 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.