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Why China Titans Energy Technology Group Co., Limited's (HKG:2188) CEO Pay Matters To You

Wei An has been the CEO of China Titans Energy Technology Group Co., Limited (HKG:2188) 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. 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 China Titans Energy Technology Group

How Does Wei An's Compensation Compare With Similar Sized Companies?

Our data indicates that China Titans Energy Technology Group Co., Limited is worth HK$412m, and total annual CEO compensation was reported as CN¥467k for the year to December 2018. Notably, the salary of CN¥467k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.6m.

Most shareholders would consider it a positive that Wei An takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at China Titans Energy Technology Group has changed over time.

SEHK:2188 CEO Compensation, January 27th 2020
SEHK:2188 CEO Compensation, January 27th 2020

Is China Titans Energy Technology Group Co., Limited Growing?

Over the last three years China Titans Energy Technology Group Co., Limited has grown its earnings per share (EPS) by an average of 1.5% per year (using a line of best fit). It saw its revenue drop 11% over the last year.

I generally like to see a little revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has China Titans Energy Technology Group Co., Limited Been A Good Investment?

Since shareholders would have lost about 64% over three years, some China Titans Energy Technology Group Co., Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

China Titans Energy Technology Group Co., Limited is currently paying its CEO below what is normal for companies of its size.

Wei An is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Shareholders may want to check for free if China Titans Energy Technology Group insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.