In This Article:
Chun Mei became the CEO of China Suntien Green Energy Corporation Limited (HKG:956) in 2017. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for China Suntien Green Energy
How Does Chun Mei's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Suntien Green Energy Corporation Limited has a market cap of HK$7.8b, and is paying total annual CEO compensation of CN¥1.1m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.8m.
A first glance this seems like a real positive for shareholders, since Chun Mei is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at China Suntien Green Energy, below.
Is China Suntien Green Energy Corporation Limited Growing?
China Suntien Green Energy Corporation Limited has increased its earnings per share (EPS) by an average of 40% a year, over the last three years (using a line of best fit). It achieved revenue growth of 33% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has China Suntien Green Energy Corporation Limited Been A Good Investment?
Boasting a total shareholder return of 127% over three years, China Suntien Green Energy Corporation 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.
In Summary...
China Suntien Green Energy Corporation Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Chun Mei deserves a raise!