Is Dynagreen Environmental Protection Group Co., Ltd.'s (HKG:1330) CEO Pay Fair?

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The CEO of Dynagreen Environmental Protection Group Co., Ltd. (HKG:1330) is Dewei Qiao. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Dynagreen Environmental Protection Group

How Does Dewei Qiao's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Dynagreen Environmental Protection Group Co., Ltd. has a market cap of HK$9.1b, and reported total annual CEO compensation of CN¥2.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥870k. We looked at a group of companies with market capitalizations from CN¥2.8b to CN¥11b, and the median CEO total compensation was CN¥3.5m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Dynagreen Environmental Protection Group. Talking in terms of the sector, salary represented approximately 84% of total compensation out of all the companies we analysed, while other remuneration made up 16% of the pie. Dynagreen Environmental Protection Group sets aside a smaller share of compensation for salary, in comparison to the overall industry.

At first glance this seems like a real positive for shareholders, since Dewei Qiao is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at Dynagreen Environmental Protection Group has changed from year to year.

SEHK:1330 CEO Compensation April 12th 2020
SEHK:1330 CEO Compensation April 12th 2020

Is Dynagreen Environmental Protection Group Co., Ltd. Growing?

Dynagreen Environmental Protection Group Co., Ltd. has seen earnings per share (EPS) move positively by an average of 18% a year, over the last three years (using a line of best fit). It achieved revenue growth of 54% 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Dynagreen Environmental Protection Group Co., Ltd. Been A Good Investment?

With a three year total loss of 30%, Dynagreen Environmental Protection Group Co., Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.