In This Article:
The CEO of China Aluminum Cans Holdings Limited (HKG:6898) is Wan Tsang Lin. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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See our latest analysis for China Aluminum Cans Holdings
How Does Wan Tsang Lin's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Aluminum Cans Holdings Limited has a market cap of HK$1.0b, and is paying total annual CEO compensation of HK$3.6m. (This number is for the twelve months until December 2018). That's just a smallish increase of 2.6% on last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$543k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.5m.
Thus we can conclude that Wan Tsang Lin receives more in total compensation than the median of a group of companies in the same market, and of similar size to China Aluminum Cans Holdings Limited. However, this doesn't necessarily mean the pay 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, below, how CEO compensation at China Aluminum Cans Holdings has changed over time.
Is China Aluminum Cans Holdings Limited Growing?
China Aluminum Cans Holdings Limited has reduced its earnings per share by an average of 25% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 14% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Aluminum Cans Holdings Limited Been A Good Investment?
Given the total loss of 6.0% over three years, many shareholders in China Aluminum Cans Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.