Ke Huang became the CEO of Tsingtao Brewery Company Limited (HKG:168) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ke Huang's Compensation Compare With Similar Sized Companies?
Our data indicates that Tsingtao Brewery Company Limited is worth HK$73b, and total annual CEO compensation was reported as CN¥644k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥566k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥28b to CN¥83b. The median total CEO compensation was CN¥3.8m.
Most shareholders would consider it a positive that Ke Huang takes less total 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 Tsingtao Brewery, below.
Is Tsingtao Brewery Company Limited Growing?
Tsingtao Brewery Company Limited has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.9%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tsingtao Brewery Company Limited Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Tsingtao Brewery Company Limited has done well by shareholders. 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.
It appears that Tsingtao Brewery 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 Ke Huang deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tsingtao Brewery.
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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