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Tiger Lin became the CEO of CITIC Telecom International Holdings Limited (HKG:1883) in 2015. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for CITIC Telecom International Holdings
How Does Tiger Lin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CITIC Telecom International Holdings Limited has a market cap of HK$10b, and is paying total annual CEO compensation of HK$9.1m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$4.0m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO compensation was HK$3.8m.
As you can see, Tiger Lin is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CITIC Telecom International 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 CITIC Telecom International Holdings, below.
Is CITIC Telecom International Holdings Limited Growing?
CITIC Telecom International Holdings Limited has increased its earnings per share (EPS) by an average of 3.7% a year, over the last three years (using a line of best fit). It achieved revenue growth of 17% over the last year.
I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has CITIC Telecom International Holdings Limited Been A Good Investment?
CITIC Telecom International Holdings Limited has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.