In 2006 Fulai Lang was appointed CEO of Hanwei Energy Services Corp. (TSE:HE). 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 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.
Check out our latest analysis for Hanwei Energy Services
How Does Fulai Lang's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hanwei Energy Services Corp. has a market cap of CA$3.9m, and reported total annual CEO compensation of CA$138k for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at CA$125k. We looked at a group of companies with market capitalizations under CA$262m, and the median CEO total compensation was CA$178k.
That means Fulai Lang receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
The graphic below shows how CEO compensation at Hanwei Energy Services has changed from year to year.
Is Hanwei Energy Services Corp. Growing?
Hanwei Energy Services Corp. saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. It achieved revenue growth of 35% over the last year.
As investors, we 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. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching.
Has Hanwei Energy Services Corp. Been A Good Investment?
With a three year total loss of 50%, Hanwei Energy Services Corp. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Fulai Lang is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying Hanwei Energy Services shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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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.