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Is COSCO SHIPPING Ports Limited's (HKG:1199) CEO Paid At A Competitive Rate?

Simply Wall St

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In 2016 Wei Zhang was appointed CEO of COSCO SHIPPING Ports Limited (HKG:1199). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for COSCO SHIPPING Ports

How Does Wei Zhang 's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that COSCO SHIPPING Ports Limited has a market cap of HK$23b, and is paying total annual CEO compensation of US$872k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$742k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$543k.

Thus we can conclude that Wei Zhang receives more in total compensation than the median of a group of companies in the same market, and of similar size to COSCO SHIPPING Ports Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at COSCO SHIPPING Ports has changed over time.

SEHK:1199 CEO Compensation, July 11th 2019

Is COSCO SHIPPING Ports Limited Growing?

COSCO SHIPPING Ports Limited has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 36%.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.

Has COSCO SHIPPING Ports Limited Been A Good Investment?

With a total shareholder return of 4.1% over three years, COSCO SHIPPING Ports Limited has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We examined the amount COSCO SHIPPING Ports Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at COSCO SHIPPING Ports.

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.