Is Jutal Offshore Oil Services Limited's (HKG:3303) CEO Paid Enough Relative To Peers?

In This Article:

Yunsheng Cao is the CEO of Jutal Offshore Oil Services Limited (HKG:3303). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Jutal Offshore Oil Services

How Does Yunsheng Cao's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Jutal Offshore Oil Services Limited has a market cap of HK$1.2b, and reported total annual CEO compensation of CN¥6.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥1.1m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from CN¥696m to CN¥2.8b, and discovered that the median CEO total compensation of that group was CN¥2.0m.

Thus we can conclude that Yunsheng Cao receives more in total compensation than the median of a group of companies in the same market, and of similar size to Jutal Offshore Oil Services Limited. However, this doesn't necessarily mean the pay is too high. 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 Jutal Offshore Oil Services has changed over time.

SEHK:3303 CEO Compensation, January 4th 2020
SEHK:3303 CEO Compensation, January 4th 2020

Is Jutal Offshore Oil Services Limited Growing?

On average over the last three years, Jutal Offshore Oil Services Limited has grown earnings per share (EPS) by 6.4% each year (using a line of best fit). Its revenue is up 1.3% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Jutal Offshore Oil Services Limited Been A Good Investment?

Given the total loss of 10% over three years, many shareholders in Jutal Offshore Oil Services Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.