Pujiang Tong became the CEO of CRCC High-Tech Equipment Corporation Limited (HKG:1786) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 CRCC High-Tech Equipment

How Does Pujiang Tong's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that CRCC High-Tech Equipment Corporation Limited has a market cap of HK$1.9b, and reported total annual CEO compensation of CN¥776k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥192k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from CN¥699m to CN¥2.8b, we found the median CEO total compensation was CN¥2.1m.

Most shareholders would consider it a positive that Pujiang Tong takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at CRCC High-Tech Equipment has changed over time.

Is CRCC High-Tech Equipment Corporation Limited Growing?

CRCC High-Tech Equipment Corporation Limited has reduced its earnings per share by an average of 56% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 13%.

Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has CRCC High-Tech Equipment Corporation Limited Been A Good Investment?

With a three year total loss of 56%, CRCC High-Tech Equipment Corporation Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

CRCC High-Tech Equipment Corporation Limited is currently paying its CEO below what is normal for companies of its size.

Shareholders should note that compensation for Pujiang Tong is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. So you may want to check if insiders are buying CRCC High-Tech Equipment shares with their own money (free access).

Important note: CRCC High-Tech Equipment may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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