Deqiang Zhang has been the CEO of Wuxi Sunlit Science and Technology Company Limited (HKG:1289) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Wuxi Sunlit Science and Technology

How Does Deqiang Zhang’s Compensation Compare With Similar Sized Companies?

According to our data, Wuxi Sunlit Science and Technology Company Limited has a market capitalization of HK$243m, and pays its CEO total annual compensation worth CN¥560k. (This is based on the year to 2016). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥450k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO compensation was CN¥1.5m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Wuxi Sunlit Science and Technology has changed from year to year.

Is Wuxi Sunlit Science and Technology Company Limited Growing?

Over the last three years Wuxi Sunlit Science and Technology Company Limited has grown its earnings per share (EPS) by an average of 103% per year. In the last year, its revenue is up 73%.

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.

Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Wuxi Sunlit Science and Technology Company Limited Been A Good Investment?

With a three year total loss of 58%, Wuxi Sunlit Science and Technology Company Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

It looks like Wuxi Sunlit Science and Technology Company Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. We’re not critical of the remuneration Deqiang Zhang receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.