Jing Wu became the CEO of ArtGo Holdings Limited (HKG:3313) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jing Wu's Compensation Compare With Similar Sized Companies?
Our data indicates that ArtGo Holdings Limited is worth HK$11b, and total annual CEO compensation is CN¥4.1m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥526k. We examined companies with market caps from CN¥7.1b to CN¥23b, and discovered that the median CEO total compensation of that group was CN¥3.4m.
So Jing Wu is paid around the average of 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 a visual representation of the CEO compensation at ArtGo Holdings, below.
Is ArtGo Holdings Limited Growing?
ArtGo Holdings Limited has reduced its earnings per share by an average of 141% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -58% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has ArtGo Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with ArtGo Holdings Limited for providing a total return of 520% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Jing Wu is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ArtGo Holdings.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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