The CEO Of CSSC Offshore & Marine Engineering (Group) Company Limited (HKG:317) Might See A Pay Rise On The Horizon

Key Insights

• CSSC Offshore & Marine Engineering (Group) to hold its Annual General Meeting on 30th of May
• Total pay for CEO Liping Chen includes CN¥896.0k salary
• The overall pay is 68% below the industry average
• CSSC Offshore & Marine Engineering (Group)'s total shareholder return over the past three years was 105% while its EPS was down 40% over the past three years

The decent performance at CSSC Offshore & Marine Engineering (Group) Company Limited (HKG:317) recently will please most shareholders as they go into the AGM coming up on 30th of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for CSSC Offshore & Marine Engineering (Group)

Comparing CSSC Offshore & Marine Engineering (Group) Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that CSSC Offshore & Marine Engineering (Group) Company Limited has a market capitalization of HK$33b, and reported total annual CEO compensation of CN¥1.1m for the year to December 2023. Notably, that's a decrease of 19% over the year before. In particular, the salary of CN¥896.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Machinery industry with market capitalizations ranging between HK$16b and HK$50b had a median total CEO compensation of CN¥3.5m. Accordingly, CSSC Offshore & Marine Engineering (Group) pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥896k	CN¥1.2m	81%
Other	CN¥210k	CN¥192k	19%
Total Compensation	CN¥1.1m	CN¥1.4m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. CSSC Offshore & Marine Engineering (Group) is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at CSSC Offshore & Marine Engineering (Group) Company Limited's Growth Numbers

Over the last three years, CSSC Offshore & Marine Engineering (Group) Company Limited has shrunk its earnings per share by 40% per year. Its revenue is up 26% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 CSSC Offshore & Marine Engineering (Group) Company Limited Been A Good Investment?

Most shareholders would probably be pleased with CSSC Offshore & Marine Engineering (Group) Company Limited for providing a total return of 105% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for CSSC Offshore & Marine Engineering (Group) that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.