Fangliang Zhang is the CEO of Genscript Biotech Corporation (HKG:1548). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
View our latest analysis for Genscript Biotech
How Does Fangliang Zhang's Compensation Compare With Similar Sized Companies?
According to our data, Genscript Biotech Corporation has a market capitalization of HK$31b, and paid its CEO total annual compensation worth US$320k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$313k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$558k.
A first glance this seems like a real positive for shareholders, since Fangliang Zhang is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Genscript Biotech, below.
Is Genscript Biotech Corporation Growing?
On average over the last three years, Genscript Biotech Corporation has shrunk earnings per share by 45% each year (measured with a line of best fit). In the last year, its revenue is up 19%.
Sadly for shareholders, earnings per share are actually down, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Genscript Biotech Corporation Been A Good Investment?
I think that the total shareholder return of 266%, over three years, would leave most Genscript Biotech Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It looks like Genscript Biotech Corporation pays its CEO less than similar sized companies.
It's well worth noting that while Fangliang Zhang is paid less than most company leaders (at similar sized companies), there isn't much EPS growth. Having said that, returns to shareholders have been great. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. So you may want to check if insiders are buying Genscript Biotech shares with their own money (free access).
If you want to buy a stock that is better than Genscript Biotech, 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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