T. Leung became the CEO of Euro Tech Holdings Company Limited (NASDAQ:CLWT) in 1996. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does T. Leung's Compensation Compare With Similar Sized Companies?
Our data indicates that Euro Tech Holdings Company Limited is worth US$8.5m, and total annual CEO compensation is US$193k. (This is based on the year to December 2018). Notably, the salary of US$193k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$473k.
A first glance this seems like a real positive for shareholders, since T. Leung is paid less than the average total compensation paid by similar sized companies. 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 Euro Tech Holdings, below.
Is Euro Tech Holdings Company Limited Growing?
Over the last three years Euro Tech Holdings Company Limited has grown its earnings per share (EPS) by an average of 87% per year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Euro Tech Holdings Company Limited Been A Good Investment?
I think that the total shareholder return of 37%, over three years, would leave most Euro Tech Holdings Company Limited shareholders smiling. 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.
Euro Tech Holdings Company Limited is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that T. Leung deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Euro Tech Holdings shares (free trial).
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.