In This Article:
In 2014 Xiuchen Li was appointed CEO of Zhaojin Mining Industry Company Limited (HKG:1818). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.
View our latest analysis for Zhaojin Mining Industry
How Does Xiuchen Li’s Compensation Compare With Similar Sized Companies?
Our data indicates that Zhaojin Mining Industry Company Limited is worth HK$22b, and total annual CEO compensation is CN¥817k. That’s less than last year. 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¥3.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Zhaojin Mining Industry has changed from year to year.
Is Zhaojin Mining Industry Company Limited Growing?
On average over the last three years, Zhaojin Mining Industry Company Limited has grown earnings per share (EPS) by 22% each year. Revenue was pretty flat on last year.
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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Zhaojin Mining Industry Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Zhaojin Mining Industry Company Limited for providing a total return of 61% 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 looks like Zhaojin Mining Industry Company Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Xiuchen Li deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying Zhaojin Mining Industry Company Limited shares with their own money (free access).