In This Article:
Manquan Wang has been the CEO of China Geothermal Industry Development Group Limited (HKG:8128) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for China Geothermal Industry Development Group
How Does Manquan Wang’s Compensation Compare With Similar Sized Companies?
Our data indicates that China Geothermal Industry Development Group Limited is worth HK$383m, and total annual CEO compensation is HK$1.3m. (This figure is for the year to 2017). 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 compensation in that group is HK$1.7m.
That means Manquan Wang receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at China Geothermal Industry Development Group has changed from year to year.
Is China Geothermal Industry Development Group Limited Growing?
On average over the last three years, China Geothermal Industry Development Group Limited has grown earnings per share (EPS) by 83% each year. Its revenue is down -14% over last year.
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.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has China Geothermal Industry Development Group Limited Been A Good Investment?
Since shareholders would have lost about 74% over three years, some China Geothermal Industry Development Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Remuneration for Manquan Wang is close enough to the median pay for a CEO of a similar sized company .
We’d say the company can boast of its EPS growth, 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 China Geothermal Industry Development Group shares (free trial).