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Congyuan Wang became the CEO of CNQC International Holdings Limited (HKG:1240) in 2016. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for CNQC International Holdings
How Does Congyuan Wang's Compensation Compare With Similar Sized Companies?
According to our data, CNQC International Holdings Limited has a market capitalization of HK$2.5b, and pays its CEO total annual compensation worth HK$7.1m. (This figure is for the year to December 2018). That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at HK$2.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$1.6b to HK$6.3b. The median total CEO compensation was HK$2.2m.
As you can see, Congyuan 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 CNQC International Holdings Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at CNQC International Holdings has changed from year to year.
Is CNQC International Holdings Limited Growing?
On average over the last three years, CNQC International Holdings Limited has shrunk earnings per share by 35% each year (measured with a line of best fit). In the last year, its revenue is down -27%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has CNQC International Holdings Limited Been A Good Investment?
Given the total loss of 37% over three years, many shareholders in CNQC International Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.