Is O-Net Technologies (Group) Limited (HKG:877) Overpaying Its CEO?

Qinglin Na became the CEO of O-Net Technologies (Group) Limited (HKG:877) in 2002. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for O-Net Technologies (Group)

How Does Qinglin Na's Compensation Compare With Similar Sized Companies?

According to our data, O-Net Technologies (Group) Limited has a market capitalization of HK$3.3b, and pays its CEO total annual compensation worth HK$5.9m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$4.0m. We looked at a group of companies with market capitalizations from HK$1.6b to HK$6.3b, and the median CEO total compensation was HK$2.3m.

Thus we can conclude that Qinglin Na receives more in total compensation than the median of a group of companies in the same market, and of similar size to O-Net Technologies (Group) Limited. However, this doesn't necessarily mean the pay is too high. 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 O-Net Technologies (Group) has changed from year to year.

SEHK:877 CEO Compensation, July 29th 2019
SEHK:877 CEO Compensation, July 29th 2019

Is O-Net Technologies (Group) Limited Growing?

O-Net Technologies (Group) Limited has increased its earnings per share (EPS) by an average of 35% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 24%.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has O-Net Technologies (Group) Limited Been A Good Investment?

Boasting a total shareholder return of 44% over three years, O-Net Technologies (Group) Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We examined the amount O-Net Technologies (Group) Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.