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Yanbin Wang has been the CEO of Rectifier Technologies Limited (ASX:RFT) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Rectifier Technologies
How Does Yanbin Wang's Compensation Compare With Similar Sized Companies?
According to our data, Rectifier Technologies Limited has a market capitalization of AU$64m, and pays its CEO total annual compensation worth AU$354k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$297k. We looked at a group of companies with market capitalizations under AU$288m, and the median CEO total compensation was AU$358k.
That means Yanbin Wang receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Rectifier Technologies, below.
Is Rectifier Technologies Limited Growing?
Rectifier Technologies Limited has reduced its earnings per share by an average of 35% a year, over the last three years (measured with a line of best fit). Its revenue is up 79% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Rectifier Technologies Limited Been A Good Investment?
Boasting a total shareholder return of 422% over three years, Rectifier Technologies 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...
Yanbin Wang is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rectifier Technologies (free visualization of insider trades).