Does Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd.'s (HKG:1349) CEO Pay Compare Well With Peers?

In This Article:

Hai Bo Wang is the CEO of Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. (HKG:1349). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Shanghai Fudan-Zhangjiang Bio-Pharmaceutical

How Does Hai Bo Wang's Compensation Compare With Similar Sized Companies?

According to our data, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. has a market capitalization of HK$4.3b, and paid its CEO total annual compensation worth CN¥3.0m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.9m. We looked at a group of companies with market capitalizations from CN¥1.4b to CN¥5.6b, and the median CEO total compensation was CN¥2.3m.

So Hai Bo Wang receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Shanghai Fudan-Zhangjiang Bio-Pharmaceutical has changed over time.

SEHK:1349 CEO Compensation, January 26th 2020
SEHK:1349 CEO Compensation, January 26th 2020

Is Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. Growing?

Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. has increased its earnings per share (EPS) by an average of 5.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 60%.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. Been A Good Investment?

Given the total loss of 24% over three years, many shareholders in Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. 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...

Hai Bo Wang is paid around what is normal the leaders of comparable size companies.

The per share growth could be better, in our view. And it's hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Shanghai Fudan-Zhangjiang Bio-Pharmaceutical.