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In 2015 Danny Wong was appointed CEO of China Information Technology Development Limited (HKG:8178). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
View our latest analysis for China Information Technology Development
How Does Danny Wong's Compensation Compare With Similar Sized Companies?
Our data indicates that China Information Technology Development Limited is worth HK$543m, and total annual CEO compensation is HK$2.2m. (This is based on the year to December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at HK$1.8m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
So Danny Wong is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at China Information Technology Development has changed from year to year.
Is China Information Technology Development Limited Growing?
Over the last three years China Information Technology Development Limited has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). Its revenue is down -4.6% over 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has China Information Technology Development Limited Been A Good Investment?
Given the total loss of 49% over three years, many shareholders in China Information Technology Development Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Danny Wong is paid around the same as most CEOs of similar size companies.