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The CEO of Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. (HKG:1349) is Hai Bo Wang. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Shanghai Fudan-Zhangjiang Bio-Pharmaceutical
How Does Hai Bo Wang's Compensation Compare With Similar Sized Companies?
According to our data, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. has a market capitalization of HK$5.4b, and pays its CEO total annual compensation worth CN¥3.0m. (This is based on the year to December 2018). That's a notable increase of 47% on last year. While we always look at total compensation first, we note that the salary component is less, at CN¥1.9m. We examined companies with market caps from CN¥2.8b to CN¥11b, and discovered that the median CEO total compensation of that group was CN¥3.0m.
So Hai Bo Wang is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Shanghai Fudan-Zhangjiang Bio-Pharmaceutical has changed from year to year.
Is Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. Growing?
Over the last three years Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. has shrunk its earnings per share by an average of 9.2% per year (measured with a line of best fit). Its revenue is up 49% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. 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. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. Been A Good Investment?
With a three year total loss of 19%, Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.