Our View On ANTA Sports Products' (HKG:2020) CEO Pay

The CEO of ANTA Sports Products Limited (HKG:2020) is Shizhong Ding, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ANTA Sports Products.

Check out our latest analysis for ANTA Sports Products

How Does Total Compensation For Shizhong Ding Compare With Other Companies In The Industry?

At the time of writing, our data shows that ANTA Sports Products Limited has a market capitalization of HK$313b, and reported total annual CEO compensation of CN¥1.7m for the year to December 2019. That is, the compensation was roughly the same as last year. In particular, the salary of CN¥1.08m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations over HK$62b , the reported median total CEO compensation was CN¥3.7m. This suggests that Shizhong Ding is paid below the industry median. Furthermore, Shizhong Ding directly owns HK$1.1b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 93% of total compensation represents salary and 7.4% is other remuneration. In ANTA Sports Products' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ANTA Sports Products Limited's Growth

ANTA Sports Products Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. In the last year, its revenue is up 19%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 ANTA Sports Products Limited Been A Good Investment?

Boasting a total shareholder return of 241% over three years, ANTA Sports Products Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we noted earlier, ANTA Sports Products pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust EPS growth, we believe Shizhong to be modestly paid. And given most shareholders are probably very happy with recent shareholder returns, they might even think Shizhong deserves a raise!

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for ANTA Sports Products that investors should be aware of in a dynamic business environment.

Important note: ANTA Sports Products 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. 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.
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