The CEO of Capxon International Electronic Company Limited (HKG:469) is Yuan Yu Lin. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Yuan Yu Lin's Compensation Compare With Similar Sized Companies?
According to our data, Capxon International Electronic Company Limited has a market capitalization of HK$338m, and paid its CEO total annual compensation worth CN¥2.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.7m. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.5m.
As you can see, Yuan Yu Lin is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Capxon International Electronic Company Limited is paying too much. 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 Capxon International Electronic, below.
Is Capxon International Electronic Company Limited Growing?
Capxon International Electronic Company Limited has increased its earnings per share (EPS) by an average of 96% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Capxon International Electronic Company Limited Been A Good Investment?
Capxon International Electronic Company Limited has generated a total shareholder return of 1.4% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Capxon International Electronic Company Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling Capxon International Electronic shares (free trial).
If you want to buy a stock that is better than Capxon International Electronic, this free list of high return, low debt companies is a great place to look.
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