In This Article:
In 2013 Zhao Yongqi was appointed CEO of Kunlun Energy Company Limited (HKG:135). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
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See our latest analysis for Kunlun Energy
How Does Zhao Yongqi's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kunlun Energy Company Limited has a market cap of HK$58b, and is paying total annual CEO compensation of CN¥795k. (This is based on the year to December 2018). That's a notable increase of 15% on last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥772k. We looked at a group of companies with market capitalizations from CN¥28b to CN¥83b, and the median CEO total compensation was CN¥3.2m.
Most shareholders would consider it a positive that Zhao Yongqi takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Kunlun Energy has changed from year to year.
Is Kunlun Energy Company Limited Growing?
Kunlun Energy Company Limited has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). Its revenue is up 19% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kunlun Energy Company Limited Been A Good Investment?
Kunlun Energy Company Limited has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
It appears that Kunlun Energy Company Limited remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Zhao Yongqi is overcompensated.