Min Zhou became the CEO of Beijing Enterprises Water Group Limited (HKG:371) in 2016. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Beijing Enterprises Water Group

How Does Min Zhou's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Beijing Enterprises Water Group Limited has a market cap of HK$42b, and reported total annual CEO compensation of HK$9.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$8.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$31b to HK$94b. The median total CEO compensation was HK$4.6m.

It would therefore appear that Beijing Enterprises Water Group Limited pays Min Zhou more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Beijing Enterprises Water Group has changed from year to year.

Is Beijing Enterprises Water Group Limited Growing?

On average over the last three years, Beijing Enterprises Water Group Limited has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is up 24% over 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Beijing Enterprises Water Group Limited Been A Good Investment?

Given the total loss of 20% over three years, many shareholders in Beijing Enterprises Water 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.

In Summary...

We examined the amount Beijing Enterprises Water Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Beijing Enterprises Water Group shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.