Should You Worry About Bank of Chongqing Co., Ltd.’s (HKG:1963) CEO Pay?

The CEO of Bank of Chongqing Co., Ltd. (HKG:1963) is Hailing Ran. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

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Check out our latest analysis for Bank of Chongqing

How Does Hailing Ran’s Compensation Compare With Similar Sized Companies?

According to our data, Bank of Chongqing Co., Ltd. has a market capitalization of HK$15b, and pays its CEO total annual compensation worth CN¥460k. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥167k. We examined companies with market caps from CN¥6.9b to CN¥22b, and discovered that the median CEO total compensation of that group was CN¥3.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Bank of Chongqing has changed over time.

SEHK:1963 CEO Compensation, May 17th 2019
SEHK:1963 CEO Compensation, May 17th 2019

Is Bank of Chongqing Co., Ltd. Growing?

Earnings per share at Bank of Chongqing Co., Ltd. are much the same as they were three years ago, albeit with a positive trend. It achieved revenue growth of 8.7% over the last year.

I’d prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.

Has Bank of Chongqing Co., Ltd. Been A Good Investment?

Given the total loss of 5.3% over three years, many shareholders in Bank of Chongqing Co., Ltd. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

It appears that Bank of Chongqing Co., Ltd. remunerates its CEO below most similar sized companies.

Hailing Ran receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, and returns over three years are not good. So while shareholders shouldn’t be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bank of Chongqing.

If you want to buy a stock that is better than Bank of Chongqing, this free list of high return, low debt companies is a great place to look.

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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.