Our Take On Shentong Robot Education Group's (HKG:8206) CEO Salary

This article will reflect on the compensation paid to Yueqing Bao who has served as CEO of Shentong Robot Education Group Company Limited (HKG:8206) since 2014. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Shentong Robot Education Group.

View our latest analysis for Shentong Robot Education Group

Comparing Shentong Robot Education Group Company Limited's CEO Compensation With the industry

Our data indicates that Shentong Robot Education Group Company Limited has a market capitalization of HK$118m, and total annual CEO compensation was reported as HK$1.6m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at HK$1.16m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.5m. So it looks like Shentong Robot Education Group compensates Yueqing Bao in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8.4% of the pie. Shentong Robot Education Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Shentong Robot Education Group Company Limited's Growth Numbers

Over the last three years, Shentong Robot Education Group Company Limited has shrunk its earnings per share by 108% per year. It saw its revenue drop 66% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shentong Robot Education Group Company Limited Been A Good Investment?

Given the total shareholder loss of 86% over three years, many shareholders in Shentong Robot Education Group Company Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, Shentong Robot Education Group pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

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. In our study, we found 3 warning signs for Shentong Robot Education Group you should be aware of, and 1 of them can't be ignored.

Switching gears from Shentong Robot Education Group, 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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