How Should Investors Feel About China Daye Non-Ferrous Metals Mining Limited’s (HKG:661) CEO Pay?
In 2012 Zhong Sheng Long was appointed CEO of China Daye Non-Ferrous Metals Mining Limited (HKG:661). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for China Daye Non-Ferrous Metals Mining
How Does Zhong Sheng Long’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Daye Non-Ferrous Metals Mining Limited has a market cap of HK$1.3b, and is paying total annual CEO compensation of CN¥2.0m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥31k. When we examined a selection of companies with market caps ranging from CN¥670m to CN¥2.7b, we found the median CEO compensation was CN¥1.7m.
So Zhong Sheng Long receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at China Daye Non-Ferrous Metals Mining has changed from year to year.
Is China Daye Non-Ferrous Metals Mining Limited Growing?
On average over the last three years, China Daye Non-Ferrous Metals Mining Limited has grown earnings per share (EPS) by 66% each year (using a line of best fit). In the last year, its revenue is down -21%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has China Daye Non-Ferrous Metals Mining Limited Been A Good Investment?
Given the total loss of 48% over three years, many shareholders in China Daye Non-Ferrous Metals Mining Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Remuneration for Zhong Sheng Long is close enough to the median pay for a CEO of a similar sized company .
We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. So you may want to check if insiders are buying China Daye Non-Ferrous Metals Mining shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
