U.S. Markets close in 3 hrs 50 mins

Should You Worry About Boyuan Construction Group, Inc.'s (TSE:BOY) CEO Pay Cheque?

Simply Wall St

Cailiang Shou has been the CEO of Boyuan Construction Group, Inc. (TSE:BOY) since 2004. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Boyuan Construction Group

How Does Cailiang Shou's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Boyuan Construction Group, Inc. has a market cap of CA$10m, and reported total annual CEO compensation of US$73k for the year to June 2019. Notably, the salary of US$73k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$160k.

Most shareholders would consider it a positive that Cailiang Shou takes less total compensation than the CEOs of most similar size companies, leaving more 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 Boyuan Construction Group, below.

TSX:BOY CEO Compensation, January 24th 2020

Is Boyuan Construction Group, Inc. Growing?

Boyuan Construction Group, Inc. has increased its earnings per share (EPS) by an average of 71% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 15%.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Boyuan Construction Group, Inc. Been A Good Investment?

With a three year total loss of 25%, Boyuan Construction Group, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Boyuan Construction Group, Inc. is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Cailiang Shou is generously paid, it would be good to see an improvement in business performance before too an increase in pay. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. So you may want to check if insiders are buying Boyuan Construction Group shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.