Here's Why China Aluminum International Engineering Corporation Limited's (SHSE:601068) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• China Aluminum International Engineering to hold its Annual General Meeting on 18th of June
• Total pay for CEO Jing Liu includes CN¥312.0k salary
• Total compensation is similar to the industry average
• China Aluminum International Engineering's EPS grew by 4.0% over the past three years while total shareholder return over the past three years was 27%

Performance at China Aluminum International Engineering Corporation Limited (SHSE:601068) has been reasonably good and CEO Jing Liu has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18th of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for China Aluminum International Engineering

Comparing China Aluminum International Engineering Corporation Limited's CEO Compensation With The Industry

Our data indicates that China Aluminum International Engineering Corporation Limited has a market capitalization of CN¥12b, and total annual CEO compensation was reported as CN¥806k for the year to December 2023. That's a notable decrease of 27% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥312k.

In comparison with other companies in the Chinese Construction industry with market capitalizations ranging from CN¥7.3b to CN¥23b, the reported median CEO total compensation was CN¥1.1m. This suggests that China Aluminum International Engineering remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	CN¥312k	CN¥257k	39%
Other	CN¥494k	CN¥840k	61%
Total Compensation	CN¥806k	CN¥1.1m	100%

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. China Aluminum International Engineering pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at China Aluminum International Engineering Corporation Limited's Growth Numbers

Over the past three years, China Aluminum International Engineering Corporation Limited has seen its earnings per share (EPS) grow by 4.0% per year. Revenue was pretty flat on last year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Aluminum International Engineering Corporation Limited Been A Good Investment?

China Aluminum International Engineering Corporation Limited has served shareholders reasonably well, with a total return of 27% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for China Aluminum International Engineering that investors should be aware of in a dynamic business environment.

Important note: China Aluminum International Engineering is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.