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Is Ausnutria Dairy Corporation Ltd's (HKG:1717) CEO Salary Justified?

Simply Wall St

Bart van der Meer has been the CEO of Ausnutria Dairy Corporation Ltd (HKG:1717) since 2013. This analysis 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Ausnutria Dairy

How Does Bart van der Meer's Compensation Compare With Similar Sized Companies?

Our data indicates that Ausnutria Dairy Corporation Ltd is worth HK$17b, and total annual CEO compensation was reported as CN¥1.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.4m. We examined companies with market caps from CN¥7.0b to CN¥22b, and discovered that the median CEO total compensation of that group was CN¥3.5m.

Most shareholders would consider it a positive that Bart van der Meer takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Ausnutria Dairy has changed from year to year.

SEHK:1717 CEO Compensation, March 18th 2020

Is Ausnutria Dairy Corporation Ltd Growing?

Ausnutria Dairy Corporation Ltd has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Ausnutria Dairy Corporation Ltd Been A Good Investment?

Most shareholders would probably be pleased with Ausnutria Dairy Corporation Ltd for providing a total return of 240% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that Ausnutria Dairy Corporation Ltd remunerates its CEO below most similar sized companies.

Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Bart van der Meer deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. On another note, Ausnutria Dairy has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.