In This Article:
Ai Yan Wang became the CEO of Huazhang Technology Holding Limited (HKG:1673) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Huazhang Technology Holding
How Does Ai Yan Wang’s Compensation Compare With Similar Sized Companies?
Our data indicates that Huazhang Technology Holding Limited is worth HK$2.2b, and total annual CEO compensation is CN¥949k. That’s a fairly small increase of 1.6% on year before. We looked at a group of companies with market capitalizations from CN¥696m to CN¥2.8b, and the median CEO compensation was CN¥2m.
Most shareholders would consider it a positive that Ai Yan Wang takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Huazhang Technology Holding, below.
Is Huazhang Technology Holding Limited Growing?
Over the last three years Huazhang Technology Holding Limited has grown its earnings per share (EPS) by an average of 14% per year. Its revenue is up 47% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Huazhang Technology Holding Limited Been A Good Investment?
I think that the total shareholder return of 88%, over three years, would leave most Huazhang Technology Holding Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Huazhang Technology Holding Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Ai Yan Wang deserves a raise!