Wei Zhang has been the CEO of COSCO SHIPPING Ports Limited (HKG:1199) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
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$26b, and is paying total annual CEO compensation of US$814k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$739k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$537k.
As you can see, Wei Zhang is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean COSCO SHIPPING Ports Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at COSCO SHIPPING Ports has changed from year to year.
Is COSCO SHIPPING Ports Limited Growing?
COSCO SHIPPING Ports Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 67%.
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.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has COSCO SHIPPING Ports Limited Been A Good Investment?
COSCO SHIPPING Ports Limited has served shareholders reasonably well, with a total return of 18% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount COSCO SHIPPING Ports Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling COSCO SHIPPING Ports shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.