Fusheng Lan has been the CEO of Zijin Mining Group Company Limited (HKG:2899) since 2016. First, this article will compare CEO compensation with compensation at other large 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Fusheng Lan's Compensation Compare With Similar Sized Companies?
According to our data, Zijin Mining Group Company Limited has a market capitalization of HK$83b, and pays its CEO total annual compensation worth CN¥5.4m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥2.9m. When we examined a group of companies with market caps over CN¥57b, we found that their median CEO total compensation was CN¥5.7m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Fusheng Lan receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Zijin Mining Group has changed from year to year.
Is Zijin Mining Group Company Limited Growing?
Over the last three years Zijin Mining Group Company Limited has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). Its revenue is up 15% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Zijin Mining Group Company Limited Been A Good Investment?
Zijin Mining Group Company Limited has served shareholders reasonably well, with a total return of 20% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Fusheng Lan is paid around the same as most CEOs of large companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Zijin Mining Group shares with their own money (free access).
If you want to buy a stock that is better than Zijin Mining Group, this free list of high return, low debt companies is a great place to look.
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