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The CEO of Great Water Holdings Limited (HKG:8196) is Yang Xie. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Great Water Holdings

How Does Yang Xie's Compensation Compare With Similar Sized Companies?

According to our data, Great Water Holdings Limited has a market capitalization of HK$303m, and pays its CEO total annual compensation worth CN¥1.7m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥1.4m. We took a group of companies with market capitalizations below CN¥1.3b, and calculated the median CEO total compensation to be CN¥1.3m.

So Yang Xie receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Great Water Holdings has changed from year to year.

Is Great Water Holdings Limited Growing?

On average over the last three years, Great Water Holdings Limited has grown earnings per share (EPS) by 2.3% each year (using a line of best fit). In the last year, its revenue is down -28%.

I would prefer it if there was revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Great Water Holdings Limited Been A Good Investment?

With a three year total loss of 54%, Great Water Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Yang Xie is close enough to the median pay for a CEO of a similar sized company .

We would like to see somewhat stronger per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest! Whatever your view on compensation, you might want to check if insiders are buying or selling Great Water Holdings shares (free trial).