In This Article:
Lin Wang is the CEO of Bank of Qingdao Co., Ltd. (HKG:3866). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Bank of Qingdao
How Does Lin Wang's Compensation Compare With Similar Sized Companies?
Our data indicates that Bank of Qingdao Co., Ltd. is worth HK$26b, and total annual CEO compensation was reported as CN¥2.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥951k. When we examined a selection of companies with market caps ranging from CN¥14b to CN¥44b, we found the median CEO total compensation was CN¥3.6m.
A first glance this seems like a real positive for shareholders, since Lin Wang is paid less than the average total compensation paid by similar sized companies. 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 Bank of Qingdao, below.
Is Bank of Qingdao Co., Ltd. Growing?
Over the last three years Bank of Qingdao Co., Ltd. has shrunk its earnings per share by an average of 13% per year (measured with a line of best fit). Its revenue is up 23% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bank of Qingdao Co., Ltd. Been A Good Investment?
Given the total loss of 9.4% over three years, many shareholders in Bank of Qingdao 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...
It looks like Bank of Qingdao Co., Ltd. pays its CEO less than similar sized companies.
Lin Wang is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bank of Qingdao.