Here's What We Think About CSSC Offshore & Marine Engineering (Group) Company Limited's (HKG:317) CEO Pay
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The CEO of CSSC Offshore & Marine Engineering (Group) Company Limited (HKG:317) is Liping Chen. First, this article will compare CEO compensation with compensation at similar sized 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 CSSC Offshore & Marine Engineering (Group)
How Does Liping Chen's Compensation Compare With Similar Sized Companies?
Our data indicates that CSSC Offshore & Marine Engineering (Group) Company Limited is worth HK$17b, and total annual CEO compensation is CN¥833k. (This figure is for the year to December 2018). That's just a smallish increase of 6.3% on last year. Notably, the salary of CN¥800k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥6.9b to CN¥22b. The median total CEO compensation was CN¥3.4m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at CSSC Offshore & Marine Engineering (Group), below.
Is CSSC Offshore & Marine Engineering (Group) Company Limited Growing?
On average over the last three years, CSSC Offshore & Marine Engineering (Group) Company Limited has shrunk earnings per share by 135% each year (measured with a line of best fit). Its revenue is down -15% over last year.
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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has CSSC Offshore & Marine Engineering (Group) Company Limited Been A Good Investment?
With a three year total loss of 37%, CSSC Offshore & Marine Engineering (Group) Company Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
CSSC Offshore & Marine Engineering (Group) Company Limited is currently paying its CEO below what is normal for companies of its size.
Liping Chen is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Whatever your view on compensation, you might want to check if insiders are buying or selling CSSC Offshore & Marine Engineering (Group) shares (free trial).
If you want to buy a stock that is better than CSSC Offshore & Marine Engineering (Group), this free list of high return, low debt companies is a great place to look.
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.
