How Ought to Traders React To China Automotive Programs, Inc.’s (NASDAQ:CAAS) CEO Pay?

In 2007 Qizhou Wu was appointed CEO of China Automotive Programs, Inc. (NASDAQ:CAAS). This report will, first, look at the CEO compensation ranges compared to CEO compensation at firms of comparable dimension. After that, we’ll take into account the expansion within the enterprise. And eventually we’ll mirror on how frequent stockholders have fared in the previous couple of years, as a secondary measure of efficiency. This technique ought to give us info to evaluate how appropriately the corporate pays the CEO.

Try our newest evaluation for China Automotive Programs

How Does Qizhou Wu’s Compensation Examine With Related Sized Firms?

In line with our knowledge, China Automotive Programs, Inc. has a market capitalization of US$62m, and pays its CEO whole annual compensation value US$164ok. (That is primarily based on the 12 months to December 2018). It’s value noting that the CEO compensation consists virtually solely of the wage, value US$164ok. We examined a bunch of comparable sized firms, with market capitalizations of under US$200m. The median CEO whole compensation in that group is US$483ok.

A primary look this looks as if an actual optimistic for shareholders, since Qizhou Wu is paid lower than the typical whole compensation paid by comparable sized firms. Although optimistic, it is vital we delve into the efficiency of the particular enterprise.

You’ll be able to see a visible illustration of the CEO compensation at China Automotive Programs, under.

NasdaqCM:CAAS CEO Compensation, August 14th 2019

Is China Automotive Programs, Inc. Rising?

During the last three years China Automotive Programs, Inc. has shrunk its earnings per share by a median of 75% per 12 months (measured with a line of greatest match). It noticed its income drop -14% during the last 12 months.

Sadly for shareholders, earnings per share are literally down, over three years. That is compounded by the actual fact income is definitely down on final 12 months. So given this comparatively weak efficiency, shareholders would most likely not wish to see excessive compensation for the CEO. It could possibly be vital to examine this free visible depiction of what analysts count on for the longer term.

Has China Automotive Programs, Inc. Been A Good Funding?

With a 3 12 months whole lack of 47%, China Automotive Programs, Inc. would definitely have some dissatisfied shareholders. So shareholders would most likely suppose the corporate should not be too beneficiant with CEO compensation.

In Abstract…

It seems that China Automotive Programs, Inc. remunerates its CEO under most comparable sized firms.

The compensation paid to Qizhou Wu is decrease than is common at comparable sized firms, however the eps development is missing, similar to the returns (over three years). Whereas one may argue it’s acceptable for the CEO to be paid lower than different CEOs of comparable sized firms, given firm efficiency, we might not name the pay overly beneficiant. Shareholders might wish to examine without cost if China Automotive Programs insiders are shopping for or promoting shares.

Essential word: China Automotive Programs will not be the most effective inventory to purchase. You would possibly discover one thing higher in this listing of fascinating firms with excessive ROE and low debt.

We purpose to carry you long-term targeted analysis evaluation pushed by elementary knowledge. Be aware that our evaluation might not issue within the newest price-sensitive firm bulletins or qualitative materials.

In case you spot an error that warrants correction, please contact the editor at [email protected]. This text by Merely Wall St is normal in nature. It doesn’t represent a advice to purchase or promote any inventory, and doesn’t take account of your goals, or your monetary state of affairs. Merely Wall St has no place within the shares talked about. Thanks for studying.

Supply hyperlink