This Is Why Shareholders Will Hold Back On A Pay Rise For Fuyao Glass Industry Group Co., Ltd.'s (SHSE:600660) CEO This Year

Key Insights

• Fuyao Glass Industry Group will host its Annual General Meeting on 25th of April
• Total pay for CEO Shu Ye includes CN¥1.08m salary
• The total compensation is similar to the average for the industry
• Fuyao Glass Industry Group's EPS grew by 28% over the past three years while total shareholder return over the past three years was 2.7%

Under the guidance of CEO Shu Ye, Fuyao Glass Industry Group Co., Ltd. (SHSE:600660) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of April. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Fuyao Glass Industry Group

How Does Total Compensation For Shu Ye Compare With Other Companies In The Industry?

Our data indicates that Fuyao Glass Industry Group Co., Ltd. has a market capitalization of CN¥113b, and total annual CEO compensation was reported as CN¥3.0m for the year to December 2023. Notably, that's an increase of 20% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥1.1m.

For comparison, other companies in the Chinese Auto Components industry with market capitalizations above CN¥58b, reported a median total CEO compensation of CN¥3.0m. From this we gather that Shu Ye is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.1m	CN¥1.1m	36%
Other	CN¥1.9m	CN¥1.4m	64%
Total Compensation	CN¥3.0m	CN¥2.5m	100%

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. It's interesting to note that Fuyao Glass Industry Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Fuyao Glass Industry Group Co., Ltd.'s Growth Numbers

Fuyao Glass Industry Group Co., Ltd.'s earnings per share (EPS) grew 28% per year over the last three years. Its revenue is up 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Fuyao Glass Industry Group Co., Ltd. Been A Good Investment?

With a total shareholder return of 2.7% over three years, Fuyao Glass Industry Group Co., Ltd. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

Shareholders may want to check for free if Fuyao Glass Industry Group insiders are buying or selling shares.

Important note: Fuyao Glass Industry Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.