Is Bosideng International Holdings Limited's (HKG:3998) CEO Paid At A Competitive Rate?
Dekang Gao has been the CEO of Bosideng International Holdings Limited (HKG:3998) since 2015. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Bosideng International Holdings
How Does Dekang Gao's Compensation Compare With Similar Sized Companies?
According to our data, Bosideng International Holdings Limited has a market capitalization of HK$47b, and paid its CEO total annual compensation worth CN¥4.0m over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at CN¥3.6m. We examined companies with market caps from CN¥28b to CN¥84b, and discovered that the median CEO total compensation of that group was CN¥4.3m.
So Dekang Gao receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Bosideng International Holdings has changed from year to year.
Is Bosideng International Holdings Limited Growing?
On average over the last three years, Bosideng International Holdings Limited has grown earnings per share (EPS) by 33% each year (using a line of best fit). Its revenue is up 17% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bosideng International Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Bosideng International Holdings Limited for providing a total return of 632% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Dekang Gao is paid around the same as most CEOs of similar size companies.
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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bosideng International Holdings (free visualization of insider trades).
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.
