Is MOBI Development Co., Ltd.'s (HKG:947) CEO Paid At A Competitive Rate?
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Xiang Hu is the CEO of MOBI Development Co., Ltd. (HKG:947). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 MOBI Development
How Does Xiang Hu's Compensation Compare With Similar Sized Companies?
Our data indicates that MOBI Development Co., Ltd. is worth HK$1.0b, and total annual CEO compensation is CN¥1.9m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥657k. We looked at a group of companies with market capitalizations under CN¥1.3b, and the median CEO total compensation was CN¥1.3m.
Thus we can conclude that Xiang Hu receives more in total compensation than the median of a group of companies in the same market, and of similar size to MOBI Development Co., Ltd.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at MOBI Development has changed from year to year.
Is MOBI Development Co., Ltd. Growing?
MOBI Development Co., Ltd. has reduced its earnings per share by an average of 94% a year, over the last three years (measured with a line of best fit). Its revenue is down -12% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has MOBI Development Co., Ltd. Been A Good Investment?
Most shareholders would probably be pleased with MOBI Development Co., Ltd. for providing a total return of 37% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by MOBI Development Co., Ltd., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
But clearly there are some positives, because investors have done well over the same time frame. So on this analysis we'd stop short of criticizing the level of CEO compensation. So you may want to check if insiders are buying MOBI Development shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
