Here's What We Think About Wanguo International Mining Group's (HKG:3939) CEO Pay

Mingqing Gao is the CEO of Wanguo International Mining Group Limited (HKG:3939), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Wanguo International Mining Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Wanguo International Mining Group

Comparing Wanguo International Mining Group Limited's CEO Compensation With the industry

At the time of writing, our data shows that Wanguo International Mining Group Limited has a market capitalization of HK$1.4b, and reported total annual CEO compensation of CN¥1.1m for the year to December 2019. That's a modest increase of 4.2% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥1.1m.

For comparison, other companies in the same industry with market capitalizations ranging between HK$775m and HK$3.1b had a median total CEO compensation of CN¥1.0m. This suggests that Wanguo International Mining Group remunerates its CEO largely in line with the industry average. Moreover, Mingqing Gao also holds HK$521m worth of Wanguo International Mining Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. On a company level, Wanguo International Mining Group prefers to reward its CEO through a salary, opting not to pay Mingqing Gao through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wanguo International Mining Group Limited's Growth Numbers

Over the last three years, Wanguo International Mining Group Limited has shrunk its earnings per share by 1.6% per year. It achieved revenue growth of 38% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 Wanguo International Mining Group Limited Been A Good Investment?

Given the total shareholder loss of 0.7% over three years, many shareholders in Wanguo International Mining Group Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Wanguo International Mining Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Wanguo International Mining Group Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Still, the company is logging healthy revenue growth over the last year. Contrarily, shareholder returns are in the red over the same stretch. EPS growth is bleak as well, adding fuel to the fire. Overall, we wouldn't say CEO is highly paid, but shareholders might not go for a raise before business metrics start to improve precipitously.

Shareholders may want to check for free if Wanguo International Mining Group insiders are buying or selling shares.

Important note: Wanguo International Mining Group 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.

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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. 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.
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