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
• The overall pay is comparable 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.

Comparing Tiande Chemical Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Tiande Chemical Holdings Limited has a market capitalization of HK$1.1b, and reported total annual CEO compensation of CN¥1.2m for the year to December 2023. That's a fairly small increase of 7.9% over the previous year. In particular, the salary of CN¥656.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Chemicals industry with market capitalizations under HK$1.6b, the reported 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. What's more, Xiaohua Chen holds HK$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. It's interesting to note that Tiande Chemical Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Tiande Chemical Holdings Limited's Growth Numbers

Tiande Chemical Holdings Limited's earnings per share (EPS) grew 30% per year over the last three years. It saw its revenue drop 41% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Tiande Chemical Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 128% over three years, Tiande Chemical Holdings Limited has done well by shareholders. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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. We did our research and spotted 2 warning signs for Tiande Chemical Holdings that investors should look into moving forward.

Switching gears from Tiande Chemical Holdings, 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.