Lianyue Wang has been the CEO of Wenzhou Kangning Hospital Co., Ltd. (HKG:2120) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Lianyue Wang's Compensation Compare With Similar Sized Companies?
According to our data, Wenzhou Kangning Hospital Co., Ltd. has a market capitalization of HK$1.9b, and pays its CEO total annual compensation worth CN¥455k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥324k. We examined companies with market caps from CN¥714m to CN¥2.9b, and discovered that the median CEO total compensation of that group was CN¥2.1m.
Most shareholders would consider it a positive that Lianyue Wang takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Wenzhou Kangning Hospital has changed from year to year.
Is Wenzhou Kangning Hospital Co., Ltd. Growing?
On average over the last three years, Wenzhou Kangning Hospital Co., Ltd. has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is up 3.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Wenzhou Kangning Hospital Co., Ltd. Been A Good Investment?
With a three year total loss of 40%, Wenzhou Kangning Hospital Co., Ltd. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
It appears that Wenzhou Kangning Hospital Co., Ltd. remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Lianyue Wang receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.
In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Whatever your view on compensation, you might want to check if insiders are buying or selling Wenzhou Kangning Hospital shares (free trial).
If you want to buy a stock that is better than Wenzhou Kangning Hospital, this free list of high return, low debt companies is a great place to look.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.