How Is Anhui Conch Cement's (HKG:914) CEO Compensated?

Bin Wu became the CEO of Anhui Conch Cement Company Limited (HKG:914) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Anhui Conch Cement pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Anhui Conch Cement

Comparing Anhui Conch Cement Company Limited's CEO Compensation With the industry

Our data indicates that Anhui Conch Cement Company Limited has a market capitalization of HK$320b, and total annual CEO compensation was reported as CN¥2.2m for the year to December 2019. We note that's an increase of 16% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥873k.

On comparing similar companies in the industry with market capitalizations above HK$62b, we found that the median total CEO compensation was CN¥3.6m. In other words, Anhui Conch Cement pays its CEO lower than the industry median.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Anhui Conch Cement pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Anhui Conch Cement Company Limited's Growth Numbers

Over the past three years, Anhui Conch Cement Company Limited has seen its earnings per share (EPS) grow by 41% per year. In the last year, its revenue is up 5.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Anhui Conch Cement Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Anhui Conch Cement Company Limited for providing a total return of 48% over three years. 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.

To Conclude...

As we touched on above, Anhui Conch Cement Company Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

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. In our study, we found 2 warning signs for Anhui Conch Cement you should be aware of, and 1 of them is potentially serious.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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