In This Article:
Eric Oei became the CEO of China Renewable Energy Investment Limited (HKG:987) in 2008. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Eric Oei’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Renewable Energy Investment Limited has a market cap of HK$494m, and is paying total annual CEO compensation of HK$1.3m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at HK$1.1m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO compensation to be HK$1.7m.
So Eric Oei 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 China Renewable Energy Investment has changed from year to year.
Is China Renewable Energy Investment Limited Growing?
Over the last three years China Renewable Energy Investment Limited has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). In the last year, its revenue is up 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
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 China Renewable Energy Investment Limited Been A Good Investment?
With a total shareholder return of 10% over three years, China Renewable Energy Investment Limited shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.