Siu Lui became the CEO of Zhongyu Gas Holdings Limited (HKG:3633) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Siu Lui's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Zhongyu Gas Holdings Limited has a market cap of HK$19b, and reported total annual CEO compensation of HK$9.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$3.6m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from HK$16b to HK$50b, and the median CEO total compensation was HK$3.9m.
It would therefore appear that Zhongyu Gas Holdings Limited pays Siu Lui more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Zhongyu Gas Holdings has changed from year to year.
Is Zhongyu Gas Holdings Limited Growing?
On average over the last three years, Zhongyu Gas Holdings Limited has grown earnings per share (EPS) by 53% each year (using a line of best fit). In the last year, its revenue is up 25%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Zhongyu Gas Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Zhongyu Gas Holdings Limited for providing a total return of 275% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Zhongyu Gas Holdings Limited with the amount paid at companies with a similar market capitalization. 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. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Zhongyu Gas Holdings.
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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