What Did China Everbright Greentech's (HKG:1257) CEO Take Home Last Year?

Xiaodong Qian has been the CEO of China Everbright Greentech Limited (HKG:1257) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether China Everbright Greentech pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for China Everbright Greentech

How Does Total Compensation For Xiaodong Qian Compare With Other Companies In The Industry?

At the time of writing, our data shows that China Everbright Greentech Limited has a market capitalization of HK$6.3b, and reported total annual CEO compensation of HK$5.4m for the year to December 2019. That's just a smallish increase of 7.7% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$2.0m.

On comparing similar companies from the same industry with market caps ranging from HK$3.1b to HK$12b, we found that the median CEO total compensation was HK$2.9m. This suggests that Xiaodong Qian is paid more than the median for the industry.

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. China Everbright Greentech sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at China Everbright Greentech Limited's Growth Numbers

China Everbright Greentech Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has China Everbright Greentech Limited Been A Good Investment?

With a three year total loss of 52% for the shareholders, China Everbright Greentech Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Xiaodong is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

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. We did our research and identified 3 warning signs (and 2 which are a bit unpleasant) in China Everbright Greentech we think you should know about.

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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