In 2012 Yvette Ong was appointed CEO of Mongolia Energy Corporation Limited (HKG:276). First, this article will compare CEO compensation with compensation at similar sized companies. 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. 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?
Our data indicates that Mongolia Energy Corporation Limited is worth HK$151m, and total annual CEO compensation was reported as HK$7.6m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.4m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.
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 better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Mongolia Energy has changed from year to year.
Is Mongolia Energy Corporation Limited Growing?
Mongolia Energy Corporation Limited has increased its earnings per share (EPS) by an average of 53% a year, over the last three years (using a line of best fit). Its revenue is up 62% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Mongolia Energy Corporation Limited Been A Good Investment?
With a three year total loss of 71%, Mongolia Energy Corporation Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Mongolia Energy Corporation 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.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Mongolia Energy insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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