Jingbo Wang became the CEO of IDG Energy Investment Limited (HKG:650) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

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View our latest analysis for IDG Energy Investment

How Does Jingbo Wang's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that IDG Energy Investment Limited has a market cap of HK$6.7b, and is paying total annual CEO compensation of HK$1.6m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.4m. We looked at a group of companies with market capitalizations from HK$3.1b to HK$13b, and the median CEO total compensation was HK$3.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at IDG Energy Investment has changed over time.

Is IDG Energy Investment Limited Growing?

IDG Energy Investment Limited has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). Its revenue is up 62% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has IDG Energy Investment Limited Been A Good Investment?

Given the total loss of 42% over three years, many shareholders in IDG Energy Investment 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...

It appears that IDG Energy Investment Limited remunerates its CEO below most similar sized companies. 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 would not say that Jingbo Wang 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. So you may want to check if insiders are buying IDG Energy Investment shares with their own money (free access).

If you want to buy a stock that is better than IDG Energy Investment, this free list of high return, low debt companies is a great place to look.

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.