In This Article:
In 2015 Bin Wu was appointed CEO of Anhui Conch Cement Company Limited (HKG:914). First, this article will compare CEO compensation with compensation at other large 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Anhui Conch Cement
How Does Bin Wu’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Anhui Conch Cement Company Limited has a market cap of HK$204.2b, and is paying total annual CEO compensation of CN¥1m. That’s a notable increase of 36% on last year. When we examined a group of companies with market caps over CN¥55.6b, we found that their median CEO compensation was CN¥5m.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Anhui Conch Cement has changed from year to year.
Is Anhui Conch Cement Company Limited Growing?
Over the last three years Anhui Conch Cement Company Limited has grown its earnings per share (EPS) by an average of 47% per year. It achieved revenue growth of 52% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Anhui Conch Cement Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Anhui Conch Cement Company Limited for providing a total return of 95% 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 Anhui Conch Cement Company Limited pays its CEO less than the average at large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Bin Wu deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Anhui Conch Cement Company Limited shares with their own money (free access).