Wai Pan Sze is the CEO of Freetech Road Recycling Technology (Holdings) Limited (HKG:6888). 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Wai Pan Sze's Compensation Compare With Similar Sized Companies?
According to our data, Freetech Road Recycling Technology (Holdings) Limited has a market capitalization of HK$199m, and paid its CEO total annual compensation worth HK$2.2m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$2.0m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
So Wai Pan Sze is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Freetech Road Recycling Technology (Holdings) has changed from year to year.
Is Freetech Road Recycling Technology (Holdings) Limited Growing?
On average over the last three years, Freetech Road Recycling Technology (Holdings) Limited has shrunk earnings per share by 74% each year (measured with a line of best fit). Its revenue is up 8.4% over last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Freetech Road Recycling Technology (Holdings) Limited Been A Good Investment?
Given the total loss of 79% over three years, many shareholders in Freetech Road Recycling Technology (Holdings) Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Wai Pan Sze is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. So you may want to check if insiders are buying Freetech Road Recycling Technology (Holdings) shares with their own money (free access).
Important note: Freetech Road Recycling Technology (Holdings) may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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