Should You Worry About Changan Minsheng APLL Logistics Co., Ltd.'s (HKG:1292) CEO Salary Level?

In This Article:

Jinggang Shi has been the CEO of Changan Minsheng APLL Logistics Co., Ltd. (HKG:1292) since 2016. 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 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.

Check out our latest analysis for Changan Minsheng APLL Logistics

How Does Jinggang Shi's Compensation Compare With Similar Sized Companies?

According to our data, Changan Minsheng APLL Logistics Co., Ltd. has a market capitalization of HK$266m, and paid its CEO total annual compensation worth CN¥635k over the year to December 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at CN¥367k. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.6m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 58% of total compensation out of all the companies we analysed, while other remuneration made up 42% of the pie. Changan Minsheng APLL Logistics is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

At first glance this seems like a real positive for shareholders, since Jinggang Shi is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at Changan Minsheng APLL Logistics has changed from year to year.

SEHK:1292 CEO Compensation May 4th 2020
SEHK:1292 CEO Compensation May 4th 2020

Is Changan Minsheng APLL Logistics Co., Ltd. Growing?

Changan Minsheng APLL Logistics Co., Ltd. has reduced its earnings per share by an average of 70% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 15%.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.