Is Xiwang Special Steel Company Limited’s (HKG:1266) CEO Paid Enough Relative To Peers?
In 2015 Jian Zhang was appointed CEO of Xiwang Special Steel Company Limited (HKG:1266). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Xiwang Special Steel
How Does Jian Zhang’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Xiwang Special Steel Company Limited has a market cap of HK$3.6b, and is paying total annual CEO compensation of CN¥483k. We note that’s an increase of 62% above last year. We examined companies with market caps from CN¥1.4b to CN¥5.6b, and discovered that the median CEO compensation of that group 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. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Xiwang Special Steel has changed from year to year.
Is Xiwang Special Steel Company Limited Growing?
On average over the last three years, Xiwang Special Steel Company Limited has grown earnings per share (EPS) by 59% each year. It achieved revenue growth of 30% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Xiwang Special Steel Company Limited Been A Good Investment?
Xiwang Special Steel Company Limited has served shareholders reasonably well, with a total return of 20% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
It looks like Xiwang Special Steel Company Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Jian Zhang is overcompensated.
It’s great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
