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In 2016 Xinming Wang was appointed CEO of Grand Baoxin Auto Group Limited (HKG:1293). 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Grand Baoxin Auto Group

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

Our data indicates that Grand Baoxin Auto Group Limited is worth HK$4.5b, and total annual CEO compensation is CN¥3.5m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥800k. We looked at a group of companies with market capitalizations from CN¥1.4b to CN¥5.5b, and the median CEO total compensation was CN¥2.1m.

As you can see, Xinming Wang is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Grand Baoxin Auto Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Grand Baoxin Auto Group has changed from year to year.

Is Grand Baoxin Auto Group Limited Growing?

Over the last three years Grand Baoxin Auto Group Limited has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). It achieved revenue growth of 6.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Grand Baoxin Auto Group Limited Been A Good Investment?

With a three year total loss of 54%, Grand Baoxin Auto Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at Grand Baoxin Auto Group Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Grand Baoxin Auto Group (free visualization of insider trades).

Important note: Grand Baoxin Auto 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.