In 2006 Qing Liang Hong was appointed CEO of Fuxing China Group Limited (SGX:AWK). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Qing Liang Hong's Compensation Compare With Similar Sized Companies?
Our data indicates that Fuxing China Group Limited is worth S$14m, and total annual CEO compensation was reported as CN¥211k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥207k. We took a group of companies with market capitalizations below S$273m, and calculated the median CEO total compensation to be S$472k.
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, below, how CEO compensation at Fuxing China Group has changed over time.
Is Fuxing China Group Limited Growing?
Over the last three years Fuxing China Group Limited has grown its earnings per share (EPS) by an average of 96% per year (using a line of best fit). Its revenue is down 17% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. 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 Fuxing China Group Limited Been A Good Investment?
Fuxing China Group Limited has not done too badly by shareholders, with a total return of 7.2%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It looks like Fuxing China Group Limited pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Qing Liang Hong is overcompensated. It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if Fuxing China Group insiders are buying or selling shares.
Important note: Fuxing China Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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