Xinming Wang became the CEO of Grand Baoxin Auto Group Limited (HKG:1293) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Grand Baoxin Auto Group

How Does Xinming Wang’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Grand Baoxin Auto Group Limited has a market cap of HK$6.7b, and is paying total annual CEO compensation of CN¥800k. (This number is for the twelve months until 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥800k. 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¥3.0m.

Most shareholders would consider it a positive that Xinming Wang takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Grand Baoxin Auto Group, below.

Is Grand Baoxin Auto Group Limited Growing?

Over the last three years Grand Baoxin Auto Group Limited has grown its earnings per share (EPS) by an average of 42% per year. It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

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

Has Grand Baoxin Auto Group Limited Been A Good Investment?

Given the total loss of 37% over three years, many shareholders in Grand Baoxin Auto Group Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Grand Baoxin Auto Group Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. So while we don’t think, Xinming Wang is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

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. So you may want to check if insiders are buying Grand Baoxin Auto Group shares with their own money (free access).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.