Bin Mo is the CEO of Country Garden Holdings Company Limited (HKG:2007). This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Bin Mo's Compensation Compare With Similar Sized Companies?
According to our data, Country Garden Holdings Company Limited has a market capitalization of HK$237b, and paid its CEO total annual compensation worth CN¥69m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥15m. 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 over CN¥56b and the median CEO total compensation was CN¥5.6m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Thus we can conclude that Bin Mo receives more in total compensation than the median of a group of large companies in the same market as Country Garden Holdings Company Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Country Garden Holdings, below.
Is Country Garden Holdings Company Limited Growing?
On average over the last three years, Country Garden Holdings Company Limited has grown earnings per share (EPS) by 47% each year (using a line of best fit). It achieved revenue growth of 60% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Country Garden Holdings Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Country Garden Holdings Company Limited for providing a total return of 200% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Country Garden Holdings Company Limited pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Country Garden Holdings.
If you want to buy a stock that is better than Country Garden Holdings, this free list of high return, low debt companies is a great place to look.
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