Xinjiang Tianye Water Saving Irrigation System Company Limited's (HKG:840) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Xinjiang Tianye Water Saving Irrigation System's Annual General Meeting to take place on 7th of June
• Salary of CN¥146.4k is part of CEO Wan Sen Yang's total remuneration
• Total compensation is 80% below industry average
• Over the past three years, Xinjiang Tianye Water Saving Irrigation System's EPS fell by 31% and over the past three years, the total loss to shareholders 41%

The performance at Xinjiang Tianye Water Saving Irrigation System Company Limited (HKG:840) has been rather lacklustre of late and shareholders may be wondering what CEO Wan Sen Yang is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 7th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Xinjiang Tianye Water Saving Irrigation System

How Does Total Compensation For Wan Sen Yang Compare With Other Companies In The Industry?

Our data indicates that Xinjiang Tianye Water Saving Irrigation System Company Limited has a market capitalization of HK$85m, and total annual CEO compensation was reported as CN¥370k for the year to December 2023. This was the same amount the CEO received in the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥146k.

In comparison with other companies in the Hong Kong Machinery industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.8m. That is to say, Wan Sen Yang is paid under the industry median.

Component	2023	2023	Proportion (2023)
Salary	CN¥146k	CN¥146k	40%
Other	CN¥223k	CN¥223k	60%
Total Compensation	CN¥370k	CN¥370k	100%

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. It's interesting to note that Xinjiang Tianye Water Saving Irrigation System allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Xinjiang Tianye Water Saving Irrigation System Company Limited's Growth Numbers

Over the last three years, Xinjiang Tianye Water Saving Irrigation System Company Limited has shrunk its earnings per share by 31% per year. It achieved revenue growth of 51% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Xinjiang Tianye Water Saving Irrigation System Company Limited Been A Good Investment?

Few Xinjiang Tianye Water Saving Irrigation System Company Limited shareholders would feel satisfied with the return of -41% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The poor performance of the share price might have something to do with the lack of earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

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. That's why we did our research, and identified 2 warning signs for Xinjiang Tianye Water Saving Irrigation System (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.