Key Insights

• Fuyao Glass Industry Group will host its Annual General Meeting on 25th of April
• CEO Shu Ye's total compensation includes salary of CN¥1.08m
• The overall pay is comparable to the industry average
• Fuyao Glass Industry Group's EPS grew by 28% over the past three years while total shareholder return over the past three years was 2.7%

Performance at Fuyao Glass Industry Group Co., Ltd. (SHSE:600660) has been reasonably good and CEO Shu Ye has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Comparing Fuyao Glass Industry Group Co., Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Fuyao Glass Industry Group Co., Ltd. has a market capitalization of CN¥113b, and reported total annual CEO compensation of CN¥3.0m for the year to December 2023. Notably, that's an increase of 20% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥1.1m.

For comparison, other companies in the Chinese Auto Components industry with market capitalizations above CN¥58b, reported a median total CEO compensation of CN¥3.0m. This suggests that Fuyao Glass Industry Group remunerates its CEO largely in line with the industry average.

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. It's interesting to note that Fuyao Glass Industry Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Fuyao Glass Industry Group Co., Ltd.'s Growth

Fuyao Glass Industry Group Co., Ltd. has seen its earnings per share (EPS) increase by 28% a year over the past three years. In the last year, its revenue is up 18%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Fuyao Glass Industry Group Co., Ltd. Been A Good Investment?

With a total shareholder return of 2.7% over three years, Fuyao Glass Industry Group Co., Ltd. has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

So you may want to check if insiders are buying Fuyao Glass Industry Group shares with their own money (free access).

Important note: Fuyao Glass Industry Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.