We Think Some Shareholders May Hesitate To Increase Shougang Concord Century Holdings Limited's (HKG:103) CEO Compensation

By
Simply Wall St
Published
May 31, 2021
SEHK:103
Source: Shutterstock

CEO Fanrong Su has done a decent job of delivering relatively good performance at Shougang Concord Century Holdings Limited (HKG:103) recently. As shareholders go into the upcoming AGM on 07 June 2021, 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 want to keep CEO compensation within reason.

Check out our latest analysis for Shougang Concord Century Holdings

Comparing Shougang Concord Century Holdings Limited's CEO Compensation With the industry

According to our data, Shougang Concord Century Holdings Limited has a market capitalization of HK$570m, and paid its CEO total annual compensation worth HK$2.7m over the year to December 2020. We note that's an increase of 19% above last year. Notably, the salary which is HK$2.64m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$958k. Accordingly, our analysis reveals that Shougang Concord Century Holdings Limited pays Fanrong Su north of the industry median.

Component20202019Proportion (2020)
Salary HK$2.6m HK$2.2m 98%
Other HK$48k HK$45k 2%
Total CompensationHK$2.7m HK$2.3m100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Shougang Concord Century Holdings has gone down a largely traditional route, paying Fanrong Su a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
SEHK:103 CEO Compensation May 31st 2021

Shougang Concord Century Holdings Limited's Growth

Shougang Concord Century Holdings Limited's earnings per share (EPS) grew 104% per year over the last three years. Its revenue is down 4.6% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Shougang Concord Century Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 59% over three years, Shougang Concord Century Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Fanrong receives almost all of their compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Shougang Concord Century Holdings that investors should think about before committing capital to this stock.

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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