We Take A Look At Whether ANTA Sports Products Limited's (HKG:2020) CEO May Be Underpaid

The impressive results at ANTA Sports Products Limited (HKG:2020) recently will be great news for shareholders. At the upcoming AGM on 07 May 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for ANTA Sports Products

Comparing ANTA Sports Products Limited's CEO Compensation With the industry

Our data indicates that ANTA Sports Products Limited has a market capitalization of HK$382b, and total annual CEO compensation was reported as CN¥1.7m for the year to December 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥1.08m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations above HK$62b, reported a median total CEO compensation of CN¥3.7m. This suggests that Shizhong Ding is paid below the industry median. Furthermore, Shizhong Ding directly owns HK$1.3b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 93% of total compensation represents salary and 7% is other remuneration. ANTA Sports Products pays a modest slice of remuneration through salary, as compared 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.

A Look at ANTA Sports Products Limited's Growth Numbers

ANTA Sports Products Limited's earnings per share (EPS) grew 18% per year over the last three years. It achieved revenue growth of 4.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ANTA Sports Products Limited Been A Good Investment?

Boasting a total shareholder return of 219% over three years, ANTA Sports Products Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for ANTA Sports Products that investors should think about before committing capital to this stock.

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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