In This Article:
The CEO of Chongqing Rural Commercial Bank Co., Ltd. (HKG:3618) is Wenhui Xie. First, this article will compare CEO compensation with compensation at similar sized 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Chongqing Rural Commercial Bank
How Does Wenhui Xie’s Compensation Compare With Similar Sized Companies?
Our data indicates that Chongqing Rural Commercial Bank Co., Ltd. is worth HK$52b, and total annual CEO compensation is CN¥420k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥336k. We looked at a group of companies with market capitalizations from CN¥27b to CN¥81b, and the median CEO compensation was CN¥2.7m.
Most shareholders would consider it a positive that Wenhui Xie takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Chongqing Rural Commercial Bank, below.
Is Chongqing Rural Commercial Bank Co., Ltd. Growing?
Over the last three years Chongqing Rural Commercial Bank Co., Ltd. has grown its earnings per share (EPS) by an average of 8.0% per year (using a line of best fit). It achieved revenue growth of 7.9% over the last year.
I’m not particularly impressed by the revenue growth, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Chongqing Rural Commercial Bank Co., Ltd. Been A Good Investment?
I think that the total shareholder return of 46%, over three years, would leave most Chongqing Rural Commercial Bank Co., Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
It looks like Chongqing Rural Commercial Bank Co., Ltd. pays its CEO less than similar sized companies.
Wenhui Xie receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. So you may want to check if insiders are buying Chongqing Rural Commercial Bank shares with their own money (free access).