Inspur Digital Enterprise Technology Limited's (HKG:596) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Inspur Digital Enterprise Technology to hold its Annual General Meeting on 17th of June
• Salary of CN¥2.52m is part of CEO Daisen Wei's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Inspur Digital Enterprise Technology's EPS grew by 93% and over the past three years, the total shareholder return was 208%

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We have been pretty impressed with the performance at Inspur Digital Enterprise Technology Limited (HKG:596) recently and CEO Daisen Wei deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 17th of June. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Inspur Digital Enterprise Technology

How Does Total Compensation For Daisen Wei Compare With Other Companies In The Industry?

According to our data, Inspur Digital Enterprise Technology Limited has a market capitalization of HK$9.5b, and paid its CEO total annual compensation worth CN¥3.1m over the year to December 2024. That's a notable decrease of 26% on last year. In particular, the salary of CN¥2.52m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Hong Kong Software industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was CN¥2.9m. This suggests that Inspur Digital Enterprise Technology remunerates its CEO largely in line with the industry average.

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. According to our research, Inspur Digital Enterprise Technology has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Inspur Digital Enterprise Technology Limited's Growth Numbers

Inspur Digital Enterprise Technology Limited's earnings per share (EPS) grew 93% per year over the last three years. In the last year, its revenue is down 1.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Inspur Digital Enterprise Technology Limited Been A Good Investment?

We think that the total shareholder return of 208%, over three years, would leave most Inspur Digital Enterprise Technology Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Inspur Digital Enterprise Technology (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Inspur Digital Enterprise Technology, 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.