Guiqing Zhang has been the CEO of China Overseas Grand Oceans Group Limited (HKG:81) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Guiqing Zhang's Compensation Compare With Similar Sized Companies?
Our data indicates that China Overseas Grand Oceans Group Limited is worth HK$19b, and total annual CEO compensation was reported as HK$11m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.5m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from HK$16b to HK$50b, we found the median CEO total compensation was HK$4.4m.
It would therefore appear that China Overseas Grand Oceans Group Limited pays Guiqing Zhang 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at China Overseas Grand Oceans Group, below.
Is China Overseas Grand Oceans Group Limited Growing?
China Overseas Grand Oceans Group Limited has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). Its revenue is up 21% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has China Overseas Grand Oceans Group Limited Been A Good Investment?
Boasting a total shareholder return of 136% over three years, China Overseas Grand Oceans Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at China Overseas Grand Oceans Group Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying China Overseas Grand Oceans Group 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.
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