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Guangren Cheng has been the CEO of APT Satellite Holdings Limited (HKG:1045) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View our latest analysis for APT Satellite Holdings
How Does Guangren Cheng's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that APT Satellite Holdings Limited has a market cap of HK$2.6b, and is paying total annual CEO compensation of HK$5.7m. (This number is for the twelve months until December 2018). That's a fairly small increase of 7.6% on year before. While we always look at total compensation first, we note that the salary component is less, at HK$2.7m. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.3b, we found the median CEO total compensation was HK$2.1m.
Thus we can conclude that Guangren Cheng receives more in total compensation than the median of a group of companies in the same market, and of similar size to APT Satellite Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at APT Satellite Holdings has changed from year to year.
Is APT Satellite Holdings Limited Growing?
APT Satellite Holdings Limited has increased its earnings per share (EPS) by an average of 2.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.5%.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 APT Satellite Holdings Limited Been A Good Investment?
Since shareholders would have lost about 51% over three years, some APT Satellite Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.