Yahoo Finance Should You Be Pleased About The CEO Pay At Shanghai Fudan Microelectronics Group Company Limited's (HKG:1385)
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Lei Shi is the CEO of Shanghai Fudan Microelectronics Group Company Limited (HKG:1385). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Shanghai Fudan Microelectronics Group
How Does Lei Shi's Compensation Compare With Similar Sized Companies?
According to our data, Shanghai Fudan Microelectronics Group Company Limited has a market capitalization of HK$6.3b, and pays its CEO total annual compensation worth CN¥3.5m. (This number is for the twelve months until December 2018). Notably, the salary of CN¥3.5m is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.7b to CN¥11b. The median total CEO compensation was CN¥3.0m.
That means Lei Shi receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Shanghai Fudan Microelectronics Group has changed from year to year.
Is Shanghai Fudan Microelectronics Group Company Limited Growing?
Shanghai Fudan Microelectronics Group Company Limited has reduced its earnings per share by an average of 5.3% a year, over the last three years (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Shanghai Fudan Microelectronics Group Company Limited Been A Good Investment?
Boasting a total shareholder return of 37% over three years, Shanghai Fudan Microelectronics Group Company Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Remuneration for Lei Shi is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. Whatever your view on compensation, you might want to check if insiders are buying or selling Shanghai Fudan Microelectronics Group shares (free trial).
Important note: Shanghai Fudan Microelectronics Group 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.
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.
