In This Article:
Sheng Gui has been the CEO of Geely Automobile Holdings Limited (HKG:175) since 2006. 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. 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.
Check out our latest analysis for Geely Automobile Holdings
How Does Sheng Gui’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Geely Automobile Holdings Limited has a market cap of HK$125.7b, and is paying total annual CEO compensation of CN¥6m. That’s actually a decrease on the year before. We took a group of companies with market capitalizations over CN¥55.5b, and calculated the median CEO compensation to be CN¥5m.
As you can see, Sheng Gui is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Geely Automobile Holdings Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Geely Automobile Holdings, below.
Is Geely Automobile Holdings Limited Growing?
Geely Automobile Holdings Limited has increased its earnings per share (EPS) by an average of 65% a year, over the last three years It achieved revenue growth of 43% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Geely Automobile Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Geely Automobile Holdings Limited for providing a total return of 252% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared the total CEO remuneration paid by Geely Automobile Holdings Limited, and compared it to remuneration at a group of other large companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Geely Automobile Holdings Limited.