Qing Liang Hong became the CEO of Fuxing China Group Limited (SGX:AWK) in 2006. 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. 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.
How Does Qing Liang Hong's Compensation Compare With Similar Sized Companies?
According to our data, Fuxing China Group Limited has a market capitalization of S$13m, and pays its CEO total annual compensation worth CN¥219k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥207k. We examined a group of similar sized companies, with market capitalizations of below S$273m. The median CEO total compensation in that group is S$207k.
So Qing Liang Hong 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, below, how CEO compensation at Fuxing China Group has changed over time.
Is Fuxing China Group Limited Growing?
Fuxing China Group Limited has increased its earnings per share (EPS) by an average of 66% a year, over the last three years (using a line of best fit). It saw its revenue drop -2.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Fuxing China Group Limited Been A Good Investment?
I think that the total shareholder return of 179%, over three years, would leave most Fuxing China Group Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Qing Liang Hong is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Fuxing China Group.
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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