Yahoo Finance How Should Investors React To Boyuan Construction Group, Inc.'s (TSE:BOY) CEO Pay?
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In 2004 Cailiang Shou was appointed CEO of Boyuan Construction Group, Inc. (TSE:BOY). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Boyuan Construction Group
How Does Cailiang Shou's Compensation Compare With Similar Sized Companies?
Our data indicates that Boyuan Construction Group, Inc. is worth CA$10m, and total annual CEO compensation is US$78k. (This number is for the twelve months until June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$78k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$112k.
A first glance this seems like a real positive for shareholders, since Cailiang Shou is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Boyuan Construction Group has changed from year to year.
Is Boyuan Construction Group, Inc. Growing?
Boyuan Construction Group, Inc. has increased its earnings per share (EPS) by an average of 44% a year, over the last three years (using a line of best fit). Its revenue is up 37% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but 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 three year total loss of 9.1%, Boyuan Construction Group, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that Boyuan Construction Group, Inc. remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Cailiang Shou receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.
This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Boyuan Construction Group.
If you want to buy a stock that is better than Boyuan Construction Group, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
