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In 2011 Hanjun Wang was appointed CEO of Beijing Urban Construction Design & Development Group Co., Limited (HKG:1599). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Beijing Urban Construction Design & Development Group
How Does Hanjun Wang's Compensation Compare With Similar Sized Companies?
According to our data, Beijing Urban Construction Design & Development Group Co., Limited has a market capitalization of HK$3.2b, and pays its CEO total annual compensation worth CN¥1.1m. (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¥265k. When we examined a selection of companies with market caps ranging from CN¥1.4b to CN¥5.5b, we found the median CEO total compensation was CN¥2.0m.
Most shareholders would consider it a positive that Hanjun Wang takes less total 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 Beijing Urban Construction Design & Development Group has changed from year to year.
Is Beijing Urban Construction Design & Development Group Co., Limited Growing?
Over the last three years Beijing Urban Construction Design & Development Group Co., Limited has grown its earnings per share (EPS) by an average of 9.1% per year (using a line of best fit). In the last year, its revenue is up 3.1%.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Beijing Urban Construction Design & Development Group Co., Limited Been A Good Investment?
Since shareholders would have lost about 38% over three years, some Beijing Urban Construction Design & Development Group Co., Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.