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Zhengang Suo became the CEO of CITIC Resources Holdings Limited (HKG:1205) in 1970. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View 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$5.0b, and pays its CEO total annual compensation worth HK$39m. (This figure is for the year to December 2018). That's a notable increase of 201% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.6m. We looked at a group of companies with market capitalizations from HK$3.1b to HK$13b, and the median CEO total compensation was HK$3.3m.
Thus we can conclude that Zhengang Suo receives more in total compensation than the median of a group of companies in the same market, and of similar size to CITIC Resources Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at CITIC Resources Holdings, below.
Is CITIC Resources Holdings Limited Growing?
CITIC Resources Holdings Limited has increased its earnings per share (EPS) by an average of 125% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 23%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CITIC Resources Holdings Limited Been A Good Investment?
Given the total loss of 5.6% 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.