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Why Xiamen International Port Co., Ltd's (HKG:3378) CEO Pay Matters To You

Simply Wall St

Zhaohui Chen has been the CEO of Xiamen International Port Co., Ltd (HKG:3378) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Xiamen International Port

How Does Zhaohui Chen 's Compensation Compare With Similar Sized Companies?

According to our data, Xiamen International Port Co., Ltd has a market capitalization of HK$2.5b, and pays its CEO total annual compensation worth CN¥976k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥304k. We looked at a group of companies with market capitalizations from CN¥1.4b to CN¥5.7b, and the median CEO total compensation was CN¥2.3m.

A first glance this seems like a real positive for shareholders, since Zhaohui Chen is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Xiamen International Port, below.

SEHK:3378 CEO Compensation, August 26th 2019

Is Xiamen International Port Co., Ltd Growing?

On average over the last three years, Xiamen International Port Co., Ltd has shrunk earnings per share by 13% each year (measured with a line of best fit). In the last year, its revenue is down -4.8%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Xiamen International Port Co., Ltd Been A Good Investment?

Given the total loss of 34% over three years, many shareholders in Xiamen International Port Co., Ltd are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that Xiamen International Port Co., Ltd remunerates its CEO below most similar sized companies.

Shareholders should note that compensation for Zhaohui Chen is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. So you may want to check if insiders are buying Xiamen International Port shares with their own money (free access).

If you want to buy a stock that is better than Xiamen International Port, this free list of high return, low debt companies is a great place to look.

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.