Yahoo Finance How Much is Wuling Motors Holdings Limited's (HKG:305) CEO Getting Paid?
The CEO of Wuling Motors Holdings Limited (HKG:305) is Shing Lee. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Wuling Motors Holdings
How Does Shing Lee's Compensation Compare With Similar Sized Companies?
Our data indicates that Wuling Motors Holdings Limited is worth HK$789m, and total annual CEO compensation is CN¥1.8m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥422k. We examined a group of similar sized companies, with market capitalizations of below CN¥1.3b. The median CEO total compensation in that group is CN¥1.3m.
As you can see, Shing Lee is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wuling Motors Holdings Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Wuling Motors Holdings, below.
Is Wuling Motors Holdings Limited Growing?
On average over the last three years, Wuling Motors Holdings Limited has grown earnings per share (EPS) by 26% each year (using a line of best fit). It saw its revenue drop -18% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Wuling Motors Holdings Limited Been A Good Investment?
Since shareholders would have lost about 40% over three years, some Wuling Motors Holdings Limited shareholders would surely be feeling negative emotions. 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 Wuling Motors Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wuling Motors Holdings.
If you want to buy a stock that is better than Wuling Motors Holdings, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
