In This Article:
Ning Li became the CEO of Li Ning Company Limited (HKG:2331) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Li Ning
How Does Ning Li’s Compensation Compare With Similar Sized Companies?
According to our data, Li Ning Company Limited has a market capitalization of HK$17b, and pays its CEO total annual compensation worth CN¥12m. That’s less than last year. When we examined a selection of companies with market caps ranging from CN¥7.0b to CN¥22b, we found the median CEO compensation was CN¥3.2m.
As you can see, Ning Li is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Li Ning Company Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Li Ning has changed over time.
Is Li Ning Company Limited Growing?
On average over the last three years, Li Ning Company Limited has grown earnings per share (EPS) by 95% each year. In the last year, its revenue is up 14%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Li Ning Company Limited Been A Good Investment?
I think that the total shareholder return of 100%, over three years, would leave most Li Ning Company Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at Li Ning Company Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Li Ning Company Limited.