Is China Ludao Technology Company Limited’s (HKG:2023) CEO Paid Enough Relative To Peers?

The CEO of China Ludao Technology Company Limited (HKG:2023) is Yuerong Yu. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 China Ludao Technology

How Does Yuerong Yu’s Compensation Compare With Similar Sized Companies?

According to our data, China Ludao Technology Company Limited has a market capitalization of HK$546m, and pays its CEO total annual compensation worth CN¥851k. (This is based on the year to December 2017). Notably, the salary of CN¥836k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CN¥1.3b, and the median CEO total compensation was CN¥1.3m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at China Ludao Technology, below.

SEHK:2023 CEO Compensation, March 15th 2019
SEHK:2023 CEO Compensation, March 15th 2019

Is China Ludao Technology Company Limited Growing?

China Ludao Technology Company Limited has increased its earnings per share (EPS) by an average of 36% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 33%.

This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has China Ludao Technology Company Limited Been A Good Investment?

Since shareholders would have lost about 24% over three years, some China Ludao Technology Company Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

It appears that China Ludao Technology Company Limited remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. So while we don’t think, Yuerong Yu is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. So you may want to check if insiders are buying China Ludao Technology shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.