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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. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Q Technology (Group)

How Does Jianqiang Wang’s Compensation Compare With Similar Sized Companies?

Our data indicates that Q Technology (Group) Company Limited is worth HK$5.6b, and total annual CEO compensation is CN¥1.3m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥344k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.7b to CN¥11b. The median total CEO compensation was CN¥2.8m.

Most shareholders would consider it a positive that Jianqiang Wang takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Q Technology (Group) has changed from year to year.

Is Q Technology (Group) Company Limited Growing?

Q Technology (Group) Company Limited has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). Its revenue is up 9.8% over last year.

This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 364% 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.

In Summary…

It looks like Q Technology (Group) Company Limited pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Jianqiang Wang deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Q Technology (Group) shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.