Does Powerleader Science & Technology Group Limited's (HKG:8236) CEO Pay Matter?
The CEO of Powerleader Science & Technology Group Limited (HKG:8236) is Weiping Dong. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
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Check out our latest analysis for Powerleader Science & Technology Group
How Does Weiping Dong's Compensation Compare With Similar Sized Companies?
Our data indicates that Powerleader Science & Technology Group Limited is worth HK$484m, and total annual CEO compensation is CN¥717k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥53k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.3m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 Powerleader Science & Technology Group has changed over time.
Is Powerleader Science & Technology Group Limited Growing?
Powerleader Science & Technology Group Limited has reduced its earnings per share by an average of 3.2% a year, over the last three years (measured with a line of best fit). It saw its revenue drop -2.3% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Powerleader Science & Technology Group Limited Been A Good Investment?
Since shareholders would have lost about 50% over three years, some Powerleader Science & Technology Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It appears that Powerleader Science & Technology Group Limited remunerates its CEO below most similar sized companies.
The compensation paid to Weiping Dong is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Powerleader Science & Technology Group (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.
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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.
