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In 2013 Hailing Ran was appointed CEO of Bank of Chongqing Co Ltd (HKG:1963). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Bank of Chongqing
How Does Hailing Ran’s Compensation Compare With Similar Sized Companies?
According to our data, Bank of Chongqing Co Ltd has a market capitalization of HK$13.9b, and pays its CEO total annual compensation worth CN¥460k. That’s actually a decrease on the year before. We examined companies with market caps from CN¥7.0b to CN¥22.3b, and discovered that the median CEO compensation of that group was CN¥3m.
This would give shareholders a good impression of the company, since most similar size companies have to 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 Bank of Chongqing has changed from year to year.
Is Bank of Chongqing Co Ltd Growing?
Over the last three years Bank of Chongqing Co Ltd has grown its earnings per share (EPS) by an average of 2.3% per year. Its revenue is down -3.1% over last year.
I would prefer it if there was revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Bank of Chongqing Co Ltd Been A Good Investment?
Since shareholders would have lost about 12% over three years, some Bank of Chongqing Co Ltd shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
It looks like Bank of Chongqing Co Ltd pays its CEO less than similar sized companies.
Hailing Ran is paid less than CEOs of similar size companies, but growth hasn’t been particularly impressive and the total shareholder return over three years would leave many disappointed. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bank of Chongqing Co Ltd.