Peter Wong has been the CEO of Towngas China Company Limited (HKG:1083) since 2007. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Towngas China
How Does Peter Wong's Compensation Compare With Similar Sized Companies?
Our data indicates that Towngas China Company Limited is worth HK$15b, and total annual CEO compensation was reported as HK$6.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.2m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from HK$7.8b to HK$25b, and discovered that the median CEO total compensation of that group was HK$4.4m.
Thus we can conclude that Peter Wong receives more in total compensation than the median of a group of companies in the same market, and of similar size to Towngas China Company Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Towngas China has changed over time.
Is Towngas China Company Limited Growing?
Over the last three years Towngas China Company Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). Its revenue is up 23% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Towngas China Company Limited Been A Good Investment?
Towngas China Company Limited has served shareholders reasonably well, with a total return of 27% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We examined the amount Towngas China Company Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Towngas China (free visualization of insider trades).
If you want to buy a stock that is better than Towngas China, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
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