Our Take On China Titans Energy Technology Group Co., Limited's (HKG:2188) CEO Salary

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In 2011 Wei An was appointed CEO of China Titans Energy Technology Group Co., Limited (HKG:2188). 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for China Titans Energy Technology Group

How Does Wei An's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that China Titans Energy Technology Group Co., Limited has a market cap of HK$537m, and is paying total annual CEO compensation of CN¥467k. (This figure is for the year to December 2018). That's a fairly small increase of 1.1% on year before. Notably, the salary of CN¥467k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.5m.

A first glance this seems like a real positive for shareholders, since Wei An is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at China Titans Energy Technology Group has changed over time.

SEHK:2188 CEO Compensation, June 18th 2019
SEHK:2188 CEO Compensation, June 18th 2019

Is China Titans Energy Technology Group Co., Limited Growing?

On average over the last three years, China Titans Energy Technology Group Co., Limited has grown earnings per share (EPS) by 71% each year (using a line of best fit). In the last year, its revenue is down -18%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China Titans Energy Technology Group Co., Limited Been A Good Investment?

Since shareholders would have lost about 51% over three years, some China Titans Energy Technology Group Co., Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

China Titans Energy Technology Group Co., 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. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Wei An is generously paid, it would be good to see an improvement in business performance before too an increase in pay.

This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Whatever your view on compensation, you might want to check if insiders are buying or selling China Titans Energy Technology Group shares (free trial).

Important note: China Titans Energy Technology Group 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.

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.

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