In This Article:
Jianhua Gu became the CEO of Kinetic Mines and Energy Limited (HKG:1277) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Kinetic Mines and Energy
How Does Jianhua Gu's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kinetic Mines and Energy Limited has a market cap of HK$3.8b, and is paying total annual CEO compensation of CN¥1.2m. (This is based on the year to December 2018). That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥780k. We looked at a group of companies with market capitalizations from CN¥1.3b to CN¥5.4b, and the median CEO total compensation was CN¥1.7m.
So Jianhua Gu receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Kinetic Mines and Energy, below.
Is Kinetic Mines and Energy Limited Growing?
Over the last three years Kinetic Mines and Energy Limited has grown its earnings per share (EPS) by an average of 87% per year (using a line of best fit). It achieved revenue growth of 40% over the last year.
This demonstrates that the company has been improving recently. A good result. 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Kinetic Mines and Energy Limited Been A Good Investment?
I think that the total shareholder return of 176%, over three years, would leave most Kinetic Mines and Energy Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Jianhua Gu is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kinetic Mines and Energy (free visualization of insider trades).