Ai Yan Wang has been the CEO of Huazhang Technology Holding Limited (HKG:1673) since 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ai Yan Wang's Compensation Compare With Similar Sized Companies?
According to our data, Huazhang Technology Holding Limited has a market capitalization of HK$2.6b, and pays its CEO total annual compensation worth CN¥949k. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥800k. We looked at a group of companies with market capitalizations from CN¥1.4b to CN¥5.6b, and the median CEO total compensation was CN¥2.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Huazhang Technology Holding, below.
Is Huazhang Technology Holding Limited Growing?
Huazhang Technology Holding Limited has reduced its earnings per share by an average of 11% a year, over the last three years (measured with a line of best fit). Its revenue is up 74% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Huazhang Technology Holding Limited Been A Good Investment?
Most shareholders would probably be pleased with Huazhang Technology Holding Limited for providing a total return of 57% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Huazhang Technology Holding Limited is currently paying its CEO below what is normal for companies of its size.
Ai Yan Wang is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Huazhang Technology Holding (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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