Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
David Chen is the CEO of Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited (HKG:1938). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Chen's Compensation Compare With Similar Sized Companies?
According to our data, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited has a market capitalization of HK$566m, and pays its CEO total annual compensation worth CN¥1.9m. (This number is for the twelve months until December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥1.9m. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.5m.
So David Chen is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Chu Kong Petroleum and Natural Gas Steel Pipe Holdings has changed from year to year.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited Growing?
Over the last three years Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited has shrunk its earnings per share by an average of 23% per year (measured with a line of best fit). Its revenue is up 86% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited Been A Good Investment?
Since shareholders would have lost about 54% over three years, some Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for David Chen is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And we think the shareholder returns - over three years - have been underwhelming. So suffice it to say we don't think the compensation is modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chu Kong Petroleum and Natural Gas Steel Pipe Holdings.
Important note: Chu Kong Petroleum and Natural Gas Steel Pipe Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 firstname.lastname@example.org. 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.