Our Take On China Resources Beer (Holdings) Company Limited's (HKG:291) CEO Salary

Xiaohai Hou has been the CEO of China Resources Beer (Holdings) Company Limited (HKG:291) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. 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 China Resources Beer (Holdings)

How Does Xiaohai Hou's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that China Resources Beer (Holdings) Company Limited has a market cap of HK$119b, and is paying total annual CEO compensation of CN¥3.9m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥1.5m. We looked at a group of companies with market capitalizations over CN¥56b and the median CEO total compensation was CN¥5.0m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

That means Xiaohai Hou receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at China Resources Beer (Holdings), below.

SEHK:291 CEO Compensation, August 4th 2019
SEHK:291 CEO Compensation, August 4th 2019

Is China Resources Beer (Holdings) Company Limited Growing?

Over the last three years, China Resources Beer (Holdings) Company Limited has not seen its earnings per share change much, though there is a positive trend. It achieved revenue growth of 7.2% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has China Resources Beer (Holdings) Company Limited Been A Good Investment?

Boasting a total shareholder return of 139% over three years, China Resources Beer (Holdings) Company Limited 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 Xiaohai Hou is close enough to the median pay for a CEO of a large company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. So you may want to check if insiders are buying China Resources Beer (Holdings) shares with their own money (free access).

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.

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.

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. Thank you for reading.