Should You Be Pleased About The CEO Pay At Shentong Robot Education Group Company Limited's (HKG:8206)
Yueqing Bao is the CEO of Shentong Robot Education Group Company Limited (HKG:8206). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Shentong Robot Education Group
How Does Yueqing Bao's Compensation Compare With Similar Sized Companies?
According to our data, Shentong Robot Education Group Company Limited has a market capitalization of HK$464m, and paid its CEO total annual compensation worth HK$1.6m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.2m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
So Yueqing Bao receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
The graphic below shows how CEO compensation at Shentong Robot Education Group has changed from year to year.
Is Shentong Robot Education Group Company Limited Growing?
Over the last three years Shentong Robot Education Group Company Limited has grown its earnings per share (EPS) by an average of 42% per year (using a line of best fit). Its revenue is down 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Shentong Robot Education Group Company Limited Been A Good Investment?
Given the total loss of 49% over three years, many shareholders in Shentong Robot Education Group Company 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...
Remuneration for Yueqing Bao is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over 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 Shentong Robot Education Group shares (free trial).
Important note: Shentong Robot Education 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.
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