Why Maanshan Iron & Steel Company Limited’s (HKG:323) CEO Pay Matters To You
Haifan Qian has been the CEO of Maanshan Iron & Steel Company Limited (HKG:323) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Maanshan Iron & Steel
How Does Haifan Qian’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Maanshan Iron & Steel Company Limited has a market cap of HK$32b, and is paying total annual CEO compensation of CN¥635k. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥240k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥14b to CN¥44b. The median total CEO compensation was CN¥3.1m.
Most shareholders would consider it a positive that Haifan Qian takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Maanshan Iron & Steel, below.
Is Maanshan Iron & Steel Company Limited Growing?
On average over the last three years, Maanshan Iron & Steel Company Limited has grown earnings per share (EPS) by 108% each year. Its revenue is up 22% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Maanshan Iron & Steel Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Maanshan Iron & Steel Company Limited for providing a total return of 152% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
It appears that Maanshan Iron & Steel Company Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Haifan Qian deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Maanshan Iron & Steel insiders are buying or selling shares.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
