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Is Beijing Urban Construction Design & Development Group Co., Limited's (HKG:1599) CEO Paid Enough Relative To Peers?

Simply Wall St

In 2011 Hanjun Wang was appointed CEO of Beijing Urban Construction Design & Development Group Co., Limited (HKG:1599). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Beijing Urban Construction Design & Development Group

How Does Hanjun Wang's Compensation Compare With Similar Sized Companies?

Our data indicates that Beijing Urban Construction Design & Development Group Co., Limited is worth HK$3.2b, and total annual CEO compensation was reported as CN¥1.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥265k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CN¥1.4b to CN¥5.6b, we found the median CEO total compensation was CN¥2.3m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Beijing Urban Construction Design & Development Group, below.

SEHK:1599 CEO Compensation, January 3rd 2020

Is Beijing Urban Construction Design & Development Group Co., Limited Growing?

Beijing Urban Construction Design & Development Group Co., Limited has increased its earnings per share (EPS) by an average of 7.6% a year, over the last three years (using a line of best fit). In the last year, its revenue changed by just 0.09%.

I would prefer it if there was revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Beijing Urban Construction Design & Development Group Co., Limited Been A Good Investment?

Given the total loss of 44% over three years, many shareholders in Beijing Urban Construction Design & Development Group Co., Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

It appears that Beijing Urban Construction Design & Development Group Co., Limited remunerates its CEO below most similar sized companies.

Hanjun Wang receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Beijing Urban Construction Design & Development Group.

Important note: Beijing Urban Construction Design & Development Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.