Is Suchuang Gas Corporation Limited’s (HKG:1430) CEO Pay Fair?
Shaozhou Du has been the CEO of Suchuang Gas Corporation Limited (HKG:1430) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
View our latest analysis for Suchuang Gas
How Does Shaozhou Du’s Compensation Compare With Similar Sized Companies?
Our data indicates that Suchuang Gas Corporation Limited is worth HK$2.2b, and total annual CEO compensation is CN¥1.6m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥1.2m. We looked at a group of companies with market capitalizations from CN¥671m to CN¥2.7b, and the median CEO compensation was CN¥1.5m.
That means Shaozhou Du receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Suchuang Gas has changed from year to year.
Is Suchuang Gas Corporation Limited Growing?
On average over the last three years, Suchuang Gas Corporation Limited has shrunk earnings per share by 21% each year (measured with a line of best fit). It achieved revenue growth of 27% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Suchuang Gas Corporation Limited Been A Good Investment?
Suchuang Gas Corporation Limited has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Shaozhou Du is paid around the same as most CEOs of similar size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While the CEO may not be underpaid, we don’t think the pay is too generous either. Shareholders may want to check for free if Suchuang Gas insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
