China Communications Construction Company Limited's (HKG:1800) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• China Communications Construction to hold its Annual General Meeting on 17th of June
• CEO Haihuai Wang's total compensation includes salary of CN¥273.0k
• The total compensation is similar to the average for the industry
• China Communications Construction's total shareholder return over the past three years was 54% while its EPS grew by 10% over the past three years

The performance at China Communications Construction Company Limited (HKG:1800) has been quite strong recently and CEO Haihuai Wang has played a role in it. Coming up to the next AGM on 17th of June, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for China Communications Construction

How Does Total Compensation For Haihuai Wang Compare With Other Companies In The Industry?

Our data indicates that China Communications Construction Company Limited has a market capitalization of HK$139b, and total annual CEO compensation was reported as CN¥975k for the year to December 2023. We note that's a decrease of 43% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥273k.

On comparing similar companies in the Hong Kong Construction industry with market capitalizations above HK$63b, we found that the median total CEO compensation was CN¥1.3m. From this we gather that Haihuai Wang is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	CN¥273k	CN¥278k	28%
Other	CN¥702k	CN¥1.4m	72%
Total Compensation	CN¥975k	CN¥1.7m	100%

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. China Communications Construction pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at China Communications Construction Company Limited's Growth Numbers

China Communications Construction Company Limited has seen its earnings per share (EPS) increase by 10% a year over the past three years. It achieved revenue growth of 4.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has China Communications Construction Company Limited Been A Good Investment?

We think that the total shareholder return of 54%, over three years, would leave most China Communications Construction Company Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for China Communications Construction (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.