Hailing Ran is the CEO of Bank of Chongqing Co., Ltd. (HKG:1963). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Hailing Ran's Compensation Compare With Similar Sized Companies?
According to our data, Bank of Chongqing Co., Ltd. has a market capitalization of HK$15b, and paid its CEO total annual compensation worth CN¥436k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥168k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥7.0b to CN¥22b. The median total CEO compensation was CN¥3.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Bank of Chongqing, below.
Is Bank of Chongqing Co., Ltd. Growing?
Bank of Chongqing Co., Ltd. saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 9.6% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bank of Chongqing Co., Ltd. Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Bank of Chongqing Co., Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It appears that Bank of Chongqing Co., Ltd. remunerates its CEO below most similar sized companies.
Hailing Ran is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Shareholders may want to check for free if Bank of Chongqing insiders are buying or selling shares.
If you want to buy a stock that is better than Bank of Chongqing, 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 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.
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.