In This Article:
Zhengang Suo became the CEO of CITIC Resources Holdings Limited (HKG:1205) in 2015. First, this article will compare CEO compensation with compensation at similar sized 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for CITIC Resources Holdings
How Does Zhengang Suo’s Compensation Compare With Similar Sized Companies?
According to our data, CITIC Resources Holdings Limited has a market capitalization of HK$5.2b, and pays its CEO total annual compensation worth HK$13m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$4.9m. We examined companies with market caps from HK$3.1b to HK$13b, and discovered that the median CEO compensation of that group was HK$3.5m.
As you can see, Zhengang Suo is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CITIC Resources Holdings Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at CITIC Resources Holdings, below.
Is CITIC Resources Holdings Limited Growing?
On average over the last three years, CITIC Resources Holdings Limited has grown earnings per share (EPS) by 94% each year. It achieved revenue growth of 30% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has CITIC Resources Holdings Limited Been A Good Investment?
Given the total loss of 9.0% over three years, many shareholders in CITIC Resources Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by CITIC Resources Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.