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Bin Mo is the CEO of Country Garden Holdings Company Limited (HKG:2007). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bin Mo's Compensation Compare With Similar Sized Companies?
Our data indicates that Country Garden Holdings Company Limited is worth HK$235b, and total annual CEO compensation is CN¥69m. (This figure is for the year to December 2018). That's a notable increase of 103% on last year. While we always look at total compensation first, we note that the salary component is less, at CN¥15m. We looked at a group of companies with market capitalizations over CN¥55b and the median CEO total compensation was CN¥4.2m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Thus we can conclude that Bin Mo receives more in total compensation than the median of a group of large companies in the same market as Country Garden Holdings Company Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Country Garden Holdings has changed over time.
Is Country Garden Holdings Company Limited Growing?
Over the last three years Country Garden Holdings Company Limited has grown its earnings per share (EPS) by an average of 52% per year (using a line of best fit). Its revenue is up 67% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Country Garden Holdings Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Country Garden Holdings Company Limited for providing a total return of 338% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Country Garden Holdings Company Limited with the amount paid at other large companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Country Garden Holdings (free visualization of insider trades).
If you want to buy a stock that is better than Country Garden Holdings, 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 firstname.lastname@example.org. 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.