How Should Investors React To Sany Heavy Equipment International Holdings Company Limited's (HKG:631) CEO Pay?

In 2015 Jian Qi was appointed CEO of Sany Heavy Equipment International Holdings Company Limited (HKG:631). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Sany Heavy Equipment International Holdings

How Does Jian Qi's Compensation Compare With Similar Sized Companies?

According to our data, Sany Heavy Equipment International Holdings Company Limited has a market capitalization of HK$13b, and paid its CEO total annual compensation worth CN¥2.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥1.4m. When we examined a selection of companies with market caps ranging from CN¥6.9b to CN¥22b, we found the median CEO total compensation was CN¥3.6m.

So Jian Qi receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Sany Heavy Equipment International Holdings has changed over time.

SEHK:631 CEO Compensation, January 28th 2020
SEHK:631 CEO Compensation, January 28th 2020

Is Sany Heavy Equipment International Holdings Company Limited Growing?

On average over the last three years, Sany Heavy Equipment International Holdings Company Limited has grown earnings per share (EPS) by 92% each year (using a line of best fit). It achieved revenue growth of 33% over the last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has Sany Heavy Equipment International Holdings Company Limited Been A Good Investment?

I think that the total shareholder return of 241%, over three years, would leave most Sany Heavy Equipment International Holdings Company Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Jian Qi is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Sany Heavy Equipment International Holdings insiders are buying or selling shares.

If you want to buy a stock that is better than Sany Heavy Equipment International Holdings, this free list of high return, low debt companies is a great place to look.

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.

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