Does Greentech Technology International Limited's (HKG:195) CEO Salary Compare Well With Others?

Dong Nie has been the CEO of Greentech Technology International Limited (HKG:195) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Greentech Technology International

How Does Dong Nie's Compensation Compare With Similar Sized Companies?

Our data indicates that Greentech Technology International Limited is worth HK$984m, and total annual CEO compensation was reported as HK$3.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.5m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

It would therefore appear that Greentech Technology International Limited pays Dong Nie 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. 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 Greentech Technology International has changed over time.

Is Greentech Technology International Limited Growing?

Over the last three years Greentech Technology International Limited has shrunk its earnings per share by an average of 7.6% per year (measured with a line of best fit). Its revenue is down 3.1% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Greentech Technology International Limited Been A Good Investment?

Greentech Technology International Limited has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared the total CEO remuneration paid by Greentech Technology International 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.

We think many shareholders would be underwhelmed with the business growth over the last three years. While shareholder returns are acceptable, they don't delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Greentech Technology International.

If you want to buy a stock that is better than Greentech Technology International, 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.

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