In This Article:
In 2016 Jian Dai was appointed CEO of BAIOO Family Interactive Limited (HKG:2100). 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for BAIOO Family Interactive
How Does Jian Dai's Compensation Compare With Similar Sized Companies?
Our data indicates that BAIOO Family Interactive Limited is worth HK$2.2b, and total annual CEO compensation was reported as CN¥1.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥1.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥696m to CN¥2.8b. The median total CEO compensation was CN¥2.1m.
So Jian Dai 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.
You can see, below, how CEO compensation at BAIOO Family Interactive has changed over time.
Is BAIOO Family Interactive Limited Growing?
On average over the last three years, BAIOO Family Interactive Limited has grown earnings per share (EPS) by 28% each year (using a line of best fit). In the last year, its revenue is down 4.6%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has BAIOO Family Interactive Limited Been A Good Investment?
I think that the total shareholder return of 154%, over three years, would leave most BAIOO Family Interactive Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Jian Dai is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BAIOO Family Interactive.