The CEO of Billion Industrial Holdings Limited (HKG:2299) is Jinbiao Wu. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jinbiao Wu's Compensation Compare With Similar Sized Companies?
According to our data, Billion Industrial Holdings Limited has a market capitalization of HK$11b, and paid its CEO total annual compensation worth CN¥1.0m over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥998k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥7.0b to CN¥22b. The median total CEO compensation was CN¥3.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Billion Industrial Holdings, below.
Is Billion Industrial Holdings Limited Growing?
Billion Industrial Holdings Limited has increased its earnings per share (EPS) by an average of 42% a year, over the last three years (using a line of best fit). It achieved revenue growth of 19% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Billion Industrial Holdings Limited Been A Good Investment?
Billion Industrial Holdings Limited has generated a total shareholder return of 2.1% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It looks like Billion Industrial Holdings Limited pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Jinbiao Wu is overcompensated. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Shareholders may want to check for free if Billion Industrial Holdings insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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