Yahoo Finance Should You Be Pleased About The CEO Pay At China VAST Industrial Urban Development Company Limited's (HKG:6166)
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In 2014 Jianjun Wang was appointed CEO of China VAST Industrial Urban Development Company Limited (HKG:6166). 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. 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 China VAST Industrial Urban Development
How Does Jianjun Wang's Compensation Compare With Similar Sized Companies?
Our data indicates that China VAST Industrial Urban Development Company Limited is worth HK$5.4b, and total annual CEO compensation is CN¥950k. (This number is for the twelve months until December 2018). That's a modest increase of 2.5% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥658k. We examined companies with market caps from CN¥2.7b to CN¥11b, and discovered that the median CEO total compensation of that group was CN¥3.1m.
A first glance this seems like a real positive for shareholders, since Jianjun Wang 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.
You can see, below, how CEO compensation at China VAST Industrial Urban Development has changed over time.
Is China VAST Industrial Urban Development Company Limited Growing?
China VAST Industrial Urban Development Company Limited has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It achieved revenue growth of 36% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has China VAST Industrial Urban Development Company Limited Been A Good Investment?
China VAST Industrial Urban Development Company Limited has served shareholders reasonably well, with a total return of 24% 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 China VAST Industrial Urban Development Company Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Jianjun Wang is overcompensated.
It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Shareholders may want to check for free if China VAST Industrial Urban Development insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
