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Does Technovator International Limited’s (HKG:1206) CEO Pay Reflect Performance?

Xiaobo Zhao has been the CEO of Technovator International Limited (HKG:1206) since 2011. 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. 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.

View our latest analysis for Technovator International

How Does Xiaobo Zhao’s Compensation Compare With Similar Sized Companies?

According to our data, Technovator International Limited has a market capitalization of HK$813m, and pays its CEO total annual compensation worth CN¥1.3m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO compensation was CN¥1.5m.

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So Xiaobo Zhao receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Technovator International has changed from year to year.

SEHK:1206 CEO Compensation November 13th 18
SEHK:1206 CEO Compensation November 13th 18

Is Technovator International Limited Growing?

Over the last three years Technovator International Limited has grown its earnings per share (EPS) by an average of 11% per year. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Technovator International Limited Been A Good Investment?

With a three year total loss of 78%, Technovator International Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Remuneration for Xiaobo Zhao 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 we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. So you may want to check if insiders are buying Technovator International Limited shares with their own money (free access).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.