Benjamin Pan is the CEO of AAC Technologies Holdings Inc. (HKG:2018). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Benjamin Pan’s Compensation Compare With Similar Sized Companies?
According to our data, AAC Technologies Holdings Inc. has a market capitalization of HK$58b, and pays its CEO total annual compensation worth CN¥4.6m. (This number is for the twelve months until December 2017). Notably, the salary of CN¥4.6m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from CN¥27b to CN¥81b, we found the median CEO compensation was CN¥2.7m.
Thus we can conclude that Benjamin Pan receives more in total compensation than the median of a group of companies in the same market, and of similar size to AAC Technologies Holdings Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at AAC Technologies Holdings, below.
Is AAC Technologies Holdings Inc. Growing?
Over the last three years AAC Technologies Holdings Inc. 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 3.8% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has AAC Technologies Holdings Inc. Been A Good Investment?
Given the total loss of 6.0% over three years, many shareholders in AAC Technologies Holdings Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at AAC Technologies Holdings Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AAC Technologies Holdings (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.
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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.