In This Article:
Long Yu has been the CEO of Yunnan Water Investment Co., Limited (HKG:6839) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Yunnan Water Investment
How Does Long Yu's Compensation Compare With Similar Sized Companies?
According to our data, Yunnan Water Investment Co., Limited has a market capitalization of HK$2.1b, and paid its CEO total annual compensation worth CN¥3.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.9m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥704m to CN¥2.8b. The median total CEO compensation was CN¥2.0m.
It would therefore appear that Yunnan Water Investment Co., Limited pays Long Yu more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Yunnan Water Investment has changed from year to year.
Is Yunnan Water Investment Co., Limited Growing?
Over the last three years Yunnan Water Investment Co., Limited has grown its earnings per share (EPS) by an average of 5.4% per year (using a line of best fit). In the last year, its revenue is up 32%.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yunnan Water Investment Co., Limited Been A Good Investment?
With a three year total loss of 50%, Yunnan Water Investment Co., Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Yunnan Water Investment Co., Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.