Increases to China State Construction Development Holdings Limited's (HKG:830) CEO Compensation Might Cool off for now

Key Insights

• China State Construction Development Holdings will host its Annual General Meeting on 31st of May
• Total pay for CEO Mingqing Wu includes HK$1.91m salary
• The total compensation is 213% higher than the average for the industry
• Over the past three years, China State Construction Development Holdings' EPS grew by 42% and over the past three years, the total shareholder return was 124%

Performance at China State Construction Development Holdings Limited (HKG:830) has been reasonably good and CEO Mingqing Wu has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 31st of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for China State Construction Development Holdings

How Does Total Compensation For Mingqing Wu Compare With Other Companies In The Industry?

According to our data, China State Construction Development Holdings Limited has a market capitalization of HK$5.4b, and paid its CEO total annual compensation worth HK$4.5m over the year to December 2023. That's a notable decrease of 11% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$1.9m.

In comparison with other companies in the Hong Kong Building industry with market capitalizations ranging from HK$3.1b to HK$13b, the reported median CEO total compensation was HK$1.4m. Accordingly, our analysis reveals that China State Construction Development Holdings Limited pays Mingqing Wu north of the industry median. What's more, Mingqing Wu holds HK$14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	HK$1.9m	HK$1.7m	42%
Other	HK$2.6m	HK$3.4m	58%
Total Compensation	HK$4.5m	HK$5.1m	100%

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. It's interesting to note that China State Construction Development Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

China State Construction Development Holdings Limited's Growth

China State Construction Development Holdings Limited's earnings per share (EPS) grew 42% per year over the last three years. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has China State Construction Development Holdings Limited Been A Good Investment?

We think that the total shareholder return of 124%, over three years, would leave most China State Construction Development Holdings 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for China State Construction Development Holdings that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.