In 2016 Jianqiang Wang was appointed CEO of Q Technology (Group) Company Limited (HKG:1478). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Jianqiang Wang’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Q Technology (Group) Company Limited has a market cap of HK$7.8b, and is paying total annual CEO compensation of CN¥816k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥340k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.3m.
Most shareholders would consider it a positive that Jianqiang Wang takes less total 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, below, how CEO compensation at Q Technology (Group) has changed over time.
Is Q Technology (Group) Company Limited Growing?
Over the last three years Q Technology (Group) Company Limited has grown its earnings per share (EPS) by an average of 5.6% per year (using a line of best fit). Its revenue is up 2.5% over last year.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Q Technology (Group) Company Limited Been A Good Investment?
Boasting a total shareholder return of 269% over three years, Q Technology (Group) Company Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Q Technology (Group) Company Limited is currently paying its CEO below what is normal for companies of its size.
Jianqiang Wang is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Shareholders may want to check for free if Q Technology (Group) insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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