How Much Did Dadi International Group's (HKG:8130) CEO Pocket Last Year?

Darren Wu became the CEO of Dadi International Group Limited (HKG:8130) in 2016, 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 Dadi International Group.

See our latest analysis for Dadi International Group

Comparing Dadi International Group Limited's CEO Compensation With the industry

Our data indicates that Dadi International Group Limited has a market capitalization of HK$295m, and total annual CEO compensation was reported as HK$2.6m for the year to March 2020. Notably, that's an increase of 27% over the year before. In particular, the salary of HK$1.85m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.6m. So it looks like Dadi International Group compensates Darren Wu in line with the median for the industry. What's more, Darren Wu holds HK$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Dadi International 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 Dadi International Group Limited's Growth Numbers

Dadi International Group Limited has seen its earnings per share (EPS) increase by 102% a year over the past three years. In the last year, its revenue is up 24%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Dadi International Group Limited Been A Good Investment?

Given the total shareholder loss of 51% over three years, many shareholders in Dadi International Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Dadi International Group pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Dadi International Group you should be aware of, and 1 of them can't be ignored.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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