Yahoo Finance Is Boyuan Construction Group Inc’s (TSE:BOY) CEO Being Overpaid?
CaiLiang Shou has been the CEO of Boyuan Construction Group Inc (TSE:BOY) since 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View 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$11m, and is paying total annual CEO compensation of US$73k. That’s less than last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$117k.
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.
You can see a visual representation of the CEO compensation at Boyuan Construction Group, below.
Is Boyuan Construction Group Inc Growing?
Over the last three years Boyuan Construction Group Inc has shrunk its earnings per share by an average of 30% per year. Its revenue is up 63% over last year.
As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Boyuan Construction Group Inc Been A Good Investment?
With a total shareholder return of 6.0% over three years, Boyuan Construction Group Inc has done okay by shareholders. 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 Boyuan Construction Group Inc pays its CEO less than similar sized companies.
It’s well worth noting that while CaiLiang Shou is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. However I do not find the CEO compensation to be concerning. So you may want to check if insiders are buying Boyuan Construction Group Inc shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
