Jing Xuan has been the CEO of BII Railway Transportation Technology Holdings Company Limited (HKG:1522) since 2017. 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 Jing Xuan's Compensation Compare With Similar Sized Companies?
According to our data, BII Railway Transportation Technology Holdings Company Limited has a market capitalization of HK$1.1b, and paid its CEO total annual compensation worth HK$2.1m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$98k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.
So Jing Xuan 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 BII Railway Transportation Technology Holdings has changed over time.
Is BII Railway Transportation Technology Holdings Company Limited Growing?
BII Railway Transportation Technology Holdings Company Limited has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). Its revenue is up 67% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has BII Railway Transportation Technology Holdings Company Limited Been A Good Investment?
With a three year total loss of 63%, BII Railway Transportation Technology Holdings Company Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Jing Xuan is close enough to the median pay for a CEO of a similar sized company .
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling BII Railway Transportation Technology Holdings shares (free trial).
If you want to buy a stock that is better than BII Railway Transportation Technology Holdings, this free list of high return, low debt companies is a great place to look.
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