Does Fuxing China Group Limited’s (SGX:AWK) CEO Pay Reflect Performance?

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Qing Liang Hong became the CEO of Fuxing China Group Limited (SGX:AWK) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Fuxing China Group

How Does Qing Liang Hong’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Fuxing China Group Limited has a market cap of S$13m, and is paying total annual CEO compensation of CN¥219k. (This number is for the twelve months until December 2018). That’s actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at CN¥207k. We took a group of companies with market capitalizations below S$273m, and calculated the median CEO total compensation to be S$305k.

So Qing Liang Hong 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.

You can see a visual representation of the CEO compensation at Fuxing China Group, below.

SGX:AWK CEO Compensation, June 20th 2019
SGX:AWK CEO Compensation, June 20th 2019

Is Fuxing China Group Limited Growing?

Over the last three years Fuxing China Group Limited has grown its earnings per share (EPS) by an average of 66% per year (using a line of best fit). It saw its revenue drop -2.8% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Fuxing China Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Fuxing China Group Limited for providing a total return of 290% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Qing Liang Hong is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Fuxing China Group insiders are buying or selling shares.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.