In 2014 Luojia Wang was appointed CEO of BBI Life Sciences Corporation (HKG:1035). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for BBI Life Sciences
How Does Luojia Wang’s Compensation Compare With Similar Sized Companies?
Our data indicates that BBI Life Sciences Corporation is worth HK$1.4b, and total annual CEO compensation is CN¥639k. Notably, that’s an increase of 160% over the year before. When we examined a selection of companies with market caps ranging from CN¥696m to CN¥2.8b, we found the median CEO compensation was CN¥2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at BBI Life Sciences, below.
Is BBI Life Sciences Corporation Growing?
BBI Life Sciences Corporation has increased its earnings per share (EPS) by an average of 23% a year, over the last three years Its revenue is up 25% 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.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has BBI Life Sciences Corporation Been A Good Investment?
BBI Life Sciences Corporation has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
It appears that BBI Life Sciences Corporation remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggest the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that Luojia Wang is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling BBI Life Sciences Corporation shares (free trial).