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The CEO of ANTA Sports Products Limited (HKG:2020) is Shizhong Ding. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. 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 Shizhong Ding's Compensation Compare With Similar Sized Companies?
According to our data, ANTA Sports Products Limited has a market capitalization of HK$140b, and pays its CEO total annual compensation worth CN¥1.7m. (This figure is for the year to December 2018). That's a fairly small increase of 0.2% on year before. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.1m. When we examined a group of companies with market caps over CN¥54b, we found that their median CEO total compensation was CN¥3.2m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
Most shareholders would consider it a positive that Shizhong Ding takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at ANTA Sports Products has changed over time.
Is ANTA Sports Products Limited Growing?
Over the last three years ANTA Sports Products Limited has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). It achieved revenue growth of 44% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has ANTA Sports Products Limited Been A Good Investment?
I think that the total shareholder return of 231%, over three years, would leave most ANTA Sports Products Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
ANTA Sports Products Limited is currently paying its CEO below what is normal for large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Shizhong Ding 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ANTA Sports Products (free visualization of insider trades).
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.
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.