Should You Be Pleased About The CEO Pay At China ITS (Holdings) Co., Ltd.'s (HKG:1900)
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Hailin Jiang became the CEO of China ITS (Holdings) Co., Ltd. (HKG:1900) in 2012. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for China ITS (Holdings)
How Does Hailin Jiang's Compensation Compare With Similar Sized Companies?
Our data indicates that China ITS (Holdings) Co., Ltd. is worth HK$329m, and total annual CEO compensation is CN¥1.4m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥521k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.5m.
That means Hailin Jiang receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at China ITS (Holdings), below.
Is China ITS (Holdings) Co., Ltd. Growing?
China ITS (Holdings) Co., Ltd. has increased its earnings per share (EPS) by an average of 47% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -21%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China ITS (Holdings) Co., Ltd. Been A Good Investment?
With a three year total loss of 66%, China ITS (Holdings) Co., Ltd. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Hailin Jiang is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling China ITS (Holdings) shares (free trial).
Important note: China ITS (Holdings) 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.
