Yvette Ong has been the CEO of Mongolia Energy Corporation Limited (HKG:276) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Yvette Ong’s Compensation Compare With Similar Sized Companies?
According to our data, Mongolia Energy Corporation Limited has a market capitalization of HK$301m, and pays its CEO total annual compensation worth HK$8.3m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$4.4m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$1.7m.
As you can see, Yvette Ong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Mongolia Energy Corporation Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Mongolia Energy has changed from year to year.
Is Mongolia Energy Corporation Limited Growing?
Over the last three years Mongolia Energy Corporation Limited has grown its earnings per share (EPS) by an average of 122% per year (using a line of best fit). In the last year, its revenue is up 75%.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mongolia Energy Corporation Limited Been A Good Investment?
Mongolia Energy Corporation Limited has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Mongolia Energy Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mongolia Energy (free visualization of insider trades).
Important note: Mongolia Energy 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.
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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.