Is Shanghai Haohai Biological Technology Co Ltd’s (HKG:6826) CEO Paid Enough Relative To Peers?

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Jianying Wu has been the CEO of Shanghai Haohai Biological Technology Co Ltd (HKG:6826) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Shanghai Haohai Biological Technology

How Does Jianying Wu’s Compensation Compare With Similar Sized Companies?

Our data indicates that Shanghai Haohai Biological Technology Co Ltd is worth HK$7.0b, and total annual CEO compensation is CN¥1.2m. Notably, that’s an increase of 26% over the year before. When we examined a selection of companies with market caps ranging from CN¥2.8b to CN¥11b, we found the median CEO compensation was CN¥2.9m.

Most shareholders would consider it a positive that Jianying Wu takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Shanghai Haohai Biological Technology, below.

SEHK:6826 CEO Compensation November 14th 18
SEHK:6826 CEO Compensation November 14th 18

Is Shanghai Haohai Biological Technology Co Ltd Growing?

Over the last three years Shanghai Haohai Biological Technology Co Ltd has grown its earnings per share (EPS) by an average of 11% per year. In the last year, its revenue is up 39%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Shanghai Haohai Biological Technology Co Ltd Been A Good Investment?

With a three year total loss of 4.5%, Shanghai Haohai Biological Technology Co Ltd would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Shanghai Haohai Biological Technology Co Ltd is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We’re not critical of the remuneration Jianying Wu receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.

In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Shanghai Haohai Biological Technology Co Ltd.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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