Tao Ye is the CEO of China MeiDong Auto Holdings Limited (HKG:1268). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for China MeiDong Auto Holdings

How Does Tao Ye's Compensation Compare With Similar Sized Companies?

According to our data, China MeiDong Auto Holdings Limited has a market capitalization of HK$12b, and paid its CEO total annual compensation worth CN¥5.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥2.4m. When we examined a selection of companies with market caps ranging from CN¥7.0b to CN¥22b, we found the median CEO total compensation was CN¥4.0m.

As you can see, Tao Ye is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean China MeiDong Auto Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at China MeiDong Auto Holdings, below.

Is China MeiDong Auto Holdings Limited Growing?

China MeiDong Auto Holdings Limited has increased its earnings per share (EPS) by an average of 39% a year, over the last three years (using a line of best fit). It achieved revenue growth of 56% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has China MeiDong Auto Holdings Limited Been A Good Investment?

I think that the total shareholder return of 952%, over three years, would leave most China MeiDong Auto Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at China MeiDong Auto Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling China MeiDong Auto Holdings shares (free trial).

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.

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.

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