How Does Beijing Beida Jade Bird Universal Sci-Tech's (HKG:8095) CEO Pay Compare With Company Performance?

The CEO of Beijing Beida Jade Bird Universal Sci-Tech Company Limited (HKG:8095) is Wanzhong Zhang, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Beijing Beida Jade Bird Universal Sci-Tech pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Beijing Beida Jade Bird Universal Sci-Tech

How Does Total Compensation For Wanzhong Zhang Compare With Other Companies In The Industry?

According to our data, Beijing Beida Jade Bird Universal Sci-Tech Company Limited has a market capitalization of HK$676m, and paid its CEO total annual compensation worth CN¥903k over the year to December 2019. That's a fairly small increase of 3.7% over the previous year. In particular, the salary of CN¥579.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.7m. That is to say, Wanzhong Zhang is paid under the industry median.

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. It's interesting to note that Beijing Beida Jade Bird Universal Sci-Tech allocates a smaller portion of compensation to salary 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.

A Look at Beijing Beida Jade Bird Universal Sci-Tech Company Limited's Growth Numbers

Beijing Beida Jade Bird Universal Sci-Tech Company Limited's earnings per share (EPS) grew 40% per year over the last three years. In the last year, its revenue is up 146%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Beijing Beida Jade Bird Universal Sci-Tech Company Limited Been A Good Investment?

Since shareholders would have lost about 70% over three years, some Beijing Beida Jade Bird Universal Sci-Tech Company 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, Beijing Beida Jade Bird Universal Sci-Tech pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Beijing Beida Jade Bird Universal Sci-Tech (1 is potentially serious!) that you should be aware of before investing here.

Switching gears from Beijing Beida Jade Bird Universal Sci-Tech, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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