How Much Did China Energy Engineering Corporation Limited's (HKG:3996) CEO Pocket Last Year?

Yanzhang Ding is the CEO of China Energy Engineering Corporation Limited (HKG:3996). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for China Energy Engineering

How Does Yanzhang Ding's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that China Energy Engineering Corporation Limited has a market cap of HK$29b, and is paying total annual CEO compensation of CN¥734k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥226k. We looked at a group of companies with market capitalizations from CN¥13b to CN¥43b, and the median CEO total compensation was CN¥2.6m.

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 China Energy Engineering has changed over time.

Is China Energy Engineering Corporation Limited Growing?

Over the last three years China Energy Engineering Corporation Limited has shrunk its earnings per share by an average of 4.0% per year (measured with a line of best fit). In the last year, its revenue is down -4.4%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has China Energy Engineering Corporation Limited Been A Good Investment?

Given the total loss of 25% over three years, many shareholders in China Energy Engineering Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

China Energy Engineering Corporation Limited is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Yanzhang Ding is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Shareholders may want to check for free if China Energy Engineering insiders are buying or selling shares.

If you want to buy a stock that is better than China Energy Engineering, this freelist of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.