Yi Ge has been the CEO of Tsaker Chemical Group Limited (HKG:1986) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Tsaker Chemical Group

At the time of writing, our data says that Tsaker Chemical Group Limited has a market cap of HK$1.4b, and reported total annual CEO compensation of CN1.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN707m to CN2.8b. The median total CEO compensation was CN2.1m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 63% of total compensation represents salary and 37% is other remuneration. So it seems like there isn't a significant difference between Tsaker Chemical Group and the broader market, in terms of salary allocation in the overall compensation package.

So Yi Ge receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Tsaker Chemical Group has changed over time.

Over the last three years Tsaker Chemical Group Limited has seen earnings per share (EPS) move in a positive direction by an average of 59% per year (using a line of best fit). In the last year, its revenue is up 20%.

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This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Since shareholders would have lost about 40% over three years, some Tsaker Chemical Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

Yi Ge is paid around the same as most CEOs of similar size companies.

We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. On another note, we've spotted 2 warning signs for Tsaker Chemical Group that investors should look into moving forward.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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Is Tsaker Chemical Group Limited (HKG:1986) Excessively Paying Its CEO? - Yahoo Finance