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The CEO of Canvest Environmental Protection Group Company Limited (HKG:1381) is Guozhen Yuan. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Guozhen Yuan’s Compensation Compare With Similar Sized Companies?
According to our data, Canvest Environmental Protection Group Company Limited has a market capitalization of HK$9.1b, and pays its CEO total annual compensation worth HK$2.5m. (This figure is for the year to December 2018). Notably, that’s an increase of 17% over the year before. While we always look at total compensation first, we note that the salary component is less, at HK$1.6m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$3.1b to HK$12b. The median total CEO compensation was HK$3.5m.
So Guozhen Yuan receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Canvest Environmental Protection Group has changed from year to year.
Is Canvest Environmental Protection Group Company Limited Growing?
Over the last three years Canvest Environmental Protection Group Company Limited has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). Its revenue is up 39% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Canvest Environmental Protection Group Company Limited Been A Good Investment?
Canvest Environmental Protection Group Company Limited has generated a total shareholder return of 7.7% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Guozhen Yuan is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Canvest Environmental Protection Group (free visualization of insider trades).
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.