In This Article:
Daxiong Wang became the CEO of COSCO SHIPPING Development Co Ltd (HKG:2866) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for COSCO SHIPPING Development
How Does Daxiong Wang’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that COSCO SHIPPING Development Co Ltd has a market cap of HK$24b, and is paying total annual CEO compensation of CN¥2.4m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥1.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥14b to CN¥44b. The median total CEO compensation was CN¥3.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at COSCO SHIPPING Development, below.
Is COSCO SHIPPING Development Co Ltd Growing?
On average over the last three years, COSCO SHIPPING Development Co Ltd has grown earnings per share (EPS) by 73% each year. In the last year, its revenue is up 11%.
This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has COSCO SHIPPING Development Co Ltd Been A Good Investment?
Since shareholders would have lost about 63% over three years, some COSCO SHIPPING Development Co Ltd shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
It appears that COSCO SHIPPING Development Co Ltd remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We’re not critical of the remuneration Daxiong Wang receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.