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Is China Metal Resources Utilization Limited's (HKG:1636) CEO Being Overpaid?

Simply Wall St

The CEO of China Metal Resources Utilization Limited (HKG:1636) is Jianqiu Yu. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for China Metal Resources Utilization

How Does Jianqiu Yu's Compensation Compare With Similar Sized Companies?

Our data indicates that China Metal Resources Utilization Limited is worth HK$8.0b, and total annual CEO compensation was reported as CN¥2.7m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.7m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.0m.

So Jianqiu Yu is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at China Metal Resources Utilization has changed from year to year.

SEHK:1636 CEO Compensation, November 12th 2019

Is China Metal Resources Utilization Limited Growing?

China Metal Resources Utilization Limited has increased its earnings per share (EPS) by an average of 105% a year, over the last three years (using a line of best fit). Its revenue is up 18% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has China Metal Resources Utilization Limited Been A Good Investment?

With a total shareholder return of 0.7% over three years, China Metal Resources Utilization Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Jianqiu Yu is paid around what is normal the leaders of comparable size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling China Metal Resources Utilization (free visualization of insider trades).

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.