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Is Huayu Expressway Group Limited's (HKG:1823) CEO Salary Justified?

In This Article:

The CEO of Huayu Expressway Group Limited (HKG:1823) is Qing Quan Mai. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

See our latest analysis for Huayu Expressway Group

How Does Qing Quan Mai's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Huayu Expressway Group Limited has a market cap of HK$375m, and reported total annual CEO compensation of HK$1.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$843k. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.

So Qing Quan Mai 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 Huayu Expressway Group has changed over time.

SEHK:1823 CEO Compensation, January 2nd 2020
SEHK:1823 CEO Compensation, January 2nd 2020

Is Huayu Expressway Group Limited Growing?

Huayu Expressway Group Limited has increased its earnings per share (EPS) by an average of 132% a year, over the last three years (using a line of best fit). It achieved revenue growth of 53% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Huayu Expressway Group Limited Been A Good Investment?

Boasting a total shareholder return of 67% over three years, Huayu Expressway Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Qing Quan Mai is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Huayu Expressway Group shares with their own money (free access).