Shareholders Will Probably Hold Off On Increasing Mongolia Energy Corporation Limited's (HKG:276) CEO Compensation For The Time Being

CEO Yvette Ong has done a decent job of delivering relatively good performance at Mongolia Energy Corporation Limited (HKG:276) recently. As shareholders go into the upcoming AGM on 12 December 2022, 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.

Check out the opportunities and risks within the HK Oil and Gas industry.

How Does Total Compensation For Yvette Ong Compare With Other Companies In The Industry?

Our data indicates that Mongolia Energy Corporation Limited has a market capitalization of HK$188m, and total annual CEO compensation was reported as HK$12m for the year to March 2022. Notably, that's an increase of 57% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$4.5m.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.3m. Accordingly, our analysis reveals that Mongolia Energy Corporation Limited pays Yvette Ong north of the industry median.

Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. Mongolia Energy sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Mongolia Energy Corporation Limited's Growth

Mongolia Energy Corporation Limited has reduced its earnings per share by 37% a year over the last three years. Its revenue is up 63% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is 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 Mongolia Energy Corporation Limited Been A Good Investment?

We think that the total shareholder return of 33%, over three years, would leave most Mongolia Energy Corporation Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Although the company has performed relatively well, we still think there are some areas that could be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Mongolia Energy (2 shouldn't be ignored!) that you should be aware of before investing here.

Important note: Mongolia Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.