Does Ozner Water International Holding Limited's (HKG:2014) CEO Pay Reflect Performance?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The CEO of Ozner Water International Holding Limited (HKG:2014) is Shu Xiao. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Ozner Water International Holding
How Does Shu Xiao's Compensation Compare With Similar Sized Companies?
Our data indicates that Ozner Water International Holding Limited is worth HK$2.5b, and total annual CEO compensation is CN¥17m. (This figure is for the year to December 2018). That's a notable increase of 317% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥1.7m. We examined companies with market caps from CN¥1.4b to CN¥5.5b, and discovered that the median CEO total compensation of that group was CN¥2.1m.
As you can see, Shu Xiao is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Ozner Water International Holding Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Ozner Water International Holding, below.
Is Ozner Water International Holding Limited Growing?
Ozner Water International Holding Limited has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Ozner Water International Holding Limited Been A Good Investment?
Given the total loss of 6.9% over three years, many shareholders in Ozner Water International Holding Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Ozner Water International Holding Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. So shareholders might not feel great about the fact that CEO pay increased on last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ozner Water International Holding (free visualization of insider trades).
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.
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.