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Bingmu Xie has been the CEO of China Infrastructure & Logistics Group Ltd. (HKG:1719) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for China Infrastructure & Logistics Group

How Does Bingmu Xie’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that China Infrastructure & Logistics Group Ltd. has a market cap of HK$1.5b, and is paying total annual CEO compensation of HK$1.0m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$884k. We looked at a group of companies with market capitalizations from HK$785m to HK$3.1b, and the median CEO compensation was HK$2.0m.

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 China Infrastructure & Logistics Group has changed from year to year.

Is China Infrastructure & Logistics Group Ltd. Growing?

Over the last three years China Infrastructure & Logistics Group Ltd. has grown its earnings per share (EPS) by an average of 7.0% per year (using a line of best fit). Revenue was pretty flat on last year.

I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China Infrastructure & Logistics Group Ltd. Been A Good Investment?

Boasting a total shareholder return of 154% over three years, China Infrastructure & Logistics Group Ltd. has done well by shareholders. 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 China Infrastructure & Logistics Group Ltd. remunerates its CEO below most similar sized companies.

Bingmu Xie is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Whatever your view on compensation, you might want to check if insiders are buying or selling China Infrastructure & Logistics Group shares (free trial).

If you want to buy a stock that is better than China Infrastructure & Logistics Group, this free list of high return, low debt companies is a great place to look.

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.