Donghui Yu became the CEO of Capinfo Company Limited (HKG:1075) in 2016. 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. 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 Donghui Yu's Compensation Compare With Similar Sized Companies?
According to our data, Capinfo Company Limited has a market capitalization of HK$913m, and paid its CEO total annual compensation worth CN¥1.1m over the year to December 2018. Notably, the salary of CN¥1.1m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.5m.
So Donghui Yu 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 Capinfo has changed over time.
Is Capinfo Company Limited Growing?
Earnings per share at Capinfo Company Limited are much the same as they were three years ago, albeit with a positive trend. Its revenue is up 14% over last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Capinfo Company Limited Been A Good Investment?
With a three year total loss of 48%, Capinfo Company Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Donghui Yu is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if Capinfo insiders are buying or selling shares.
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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