How Much Is CRCC High-Tech Equipment's (HKG:1786) CEO Getting Paid?

This article will reflect on the compensation paid to Pujiang Tong who has served as CEO of CRCC High-Tech Equipment Corporation Limited (HKG:1786) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for CRCC High-Tech Equipment.

See our latest analysis for CRCC High-Tech Equipment

Comparing CRCC High-Tech Equipment Corporation Limited's CEO Compensation With the industry

At the time of writing, our data shows that CRCC High-Tech Equipment Corporation Limited has a market capitalization of HK$1.2b, and reported total annual CEO compensation of CN¥1.5m for the year to December 2019. We note that's an increase of 97% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥192k.

On comparing similar companies from the same industry with market caps ranging from HK$775m to HK$3.1b, we found that the median CEO total compensation was CN¥2.2m. This suggests that CRCC High-Tech Equipment remunerates its CEO largely in line with the industry average.

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. It's interesting to note that CRCC High-Tech Equipment allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at CRCC High-Tech Equipment Corporation Limited's Growth Numbers

Over the last three years, CRCC High-Tech Equipment Corporation Limited has shrunk its earnings per share by 82% per year. In the last year, its revenue is down 43%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CRCC High-Tech Equipment Corporation Limited Been A Good Investment?

Since shareholders would have lost about 54% over three years, some CRCC High-Tech Equipment Corporation Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, CRCC High-Tech Equipment pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for CRCC High-Tech Equipment you should be aware of, and 1 of them is significant.

Important note: CRCC High-Tech Equipment 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.

If you’re looking to trade CRCC High-Tech Equipment, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.