Is Ping An Insurance (Group) Company of China, Ltd.'s (HKG:2318) CEO Salary Justified?

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The CEO of Ping An Insurance (Group) Company of China, Ltd. (HKG:2318) is Peter Ma. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Ping An Insurance (Group) Company of China

How Does Peter Ma's Compensation Compare With Similar Sized Companies?

According to our data, Ping An Insurance (Group) Company of China, Ltd. has a market capitalization of HK$1.8t, and paid its CEO total annual compensation worth CN¥5.2m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥2.9m. When we examined a group of companies with market caps over CN¥56b, we found that their median CEO total compensation was CN¥6.5m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

So Peter Ma is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Ping An Insurance (Group) Company of China has changed over time.

SEHK:2318 CEO Compensation, January 5th 2020
SEHK:2318 CEO Compensation, January 5th 2020

Is Ping An Insurance (Group) Company of China, Ltd. Growing?

On average over the last three years, Ping An Insurance (Group) Company of China, Ltd. has grown earnings per share (EPS) by 33% each year (using a line of best fit). In the last year, its revenue is up 11%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Ping An Insurance (Group) Company of China, Ltd. Been A Good Investment?

Boasting a total shareholder return of 156% over three years, Ping An Insurance (Group) Company of China, Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Peter Ma is close enough to the median pay for a CEO of a large company .

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ping An Insurance (Group) Company of China.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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