How Does MEIGU Technology Holding Group's (HKG:8349) CEO Salary Compare to Peers?

Guitang Jiang became the CEO of MEIGU Technology Holding Group Limited (HKG:8349) in 2003, and we think it's a good time to look at 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 MEIGU Technology Holding Group.

View our latest analysis for MEIGU Technology Holding Group

How Does Total Compensation For Guitang Jiang Compare With Other Companies In The Industry?

Our data indicates that MEIGU Technology Holding Group Limited has a market capitalization of HK$296m, and total annual CEO compensation was reported as CN¥646k for the year to December 2019. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥199k.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.2m. In other words, MEIGU Technology Holding Group pays its CEO lower than the industry median. What's more, Guitang Jiang holds HK$116m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. MEIGU Technology Holding Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

MEIGU Technology Holding Group Limited's Growth

Over the past three years, MEIGU Technology Holding Group Limited has seen its earnings per share (EPS) grow by 79% per year. In the last year, its revenue is up 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 MEIGU Technology Holding Group Limited Been A Good Investment?

With a three year total loss of 74% for the shareholders, MEIGU Technology Holding Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Guitang is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However we must not forget that the EPS growth has been very strong over three years. Considering EPS are on the up, we would say Guitang is compensated fairly. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for MEIGU Technology Holding Group that investors should be aware of in a dynamic business environment.

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

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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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