We Take A Look At Why Lingbao Gold Group Company Ltd.'s (HKG:3330) CEO Has Earned Their Pay Packet

Key Insights

• Lingbao Gold Group to hold its Annual General Meeting on 29th of May
• CEO Chengqun He's total compensation includes salary of CN¥658.0k
• Total compensation is similar to the industry average
• Lingbao Gold Group's EPS grew by 35% over the past three years while total shareholder return over the past three years was 174%

We have been pretty impressed with the performance at Lingbao Gold Group Company Ltd. (HKG:3330) recently and CEO Chengqun He deserves a mention for their role in it. Coming up to the next AGM on 29th of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Lingbao Gold Group

How Does Total Compensation For Chengqun He Compare With Other Companies In The Industry?

According to our data, Lingbao Gold Group Company Ltd. has a market capitalization of HK$4.2b, and paid its CEO total annual compensation worth CN¥1.3m over the year to December 2023. Notably, that's an increase of 13% over the year before. We note that the salary of CN¥658.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Hong Kong Metals and Mining industry with market capitalizations ranging from HK$1.6b to HK$6.2b, the reported median CEO total compensation was CN¥1.3m. So it looks like Lingbao Gold Group compensates Chengqun He in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CN¥658k	CN¥824k	51%
Other	CN¥625k	CN¥312k	49%
Total Compensation	CN¥1.3m	CN¥1.1m	100%

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. It's interesting to note that Lingbao Gold Group allocates a smaller portion of compensation to salary in comparison to the broader industry. 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.

Lingbao Gold Group Company Ltd.'s Growth

Lingbao Gold Group Company Ltd.'s earnings per share (EPS) grew 35% per year over the last three years. It achieved revenue growth of 4.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Lingbao Gold Group Company Ltd. Been A Good Investment?

Boasting a total shareholder return of 174% over three years, Lingbao Gold Group Company Ltd. has done well by shareholders. 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 did our research and identified 3 warning signs (and 1 which can't be ignored) in Lingbao Gold Group we think you should know about.

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.