In 2011 Xiaobo Zhao was appointed CEO of Technovator International Limited (HKG:1206). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Xiaobo Zhao's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Technovator International Limited has a market cap of HK$438m, and reported total annual CEO compensation of CN¥1.4m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥600k. 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¥1.6m.
That means Xiaobo Zhao receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Technovator International has changed from year to year.
Is Technovator International Limited Growing?
On average over the last three years, Technovator International Limited has grown earnings per share (EPS) by 6.4% each year (using a line of best fit). It saw its revenue drop 9.8% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Technovator International Limited Been A Good Investment?
Given the total loss of 81% over three years, many shareholders in Technovator International Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Xiaobo Zhao is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. Shareholders may want to check for free if Technovator International insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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