Mongolian Mining Corporation's (HKG:975) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Mongolian Mining will host its Annual General Meeting on 26th of June
• CEO Battsengel Gotov's total compensation includes salary of US$919.0k
• The total compensation is 711% higher than the average for the industry
• Mongolian Mining's total shareholder return over the past three years was 316% while its EPS grew by 98% over the past three years

Under the guidance of CEO Battsengel Gotov, Mongolian Mining Corporation (HKG:975) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Mongolian Mining

Comparing Mongolian Mining Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Mongolian Mining Corporation has a market capitalization of HK$9.6b, and reported total annual CEO compensation of US$1.7m for the year to December 2023. We note that's an increase of 95% above last year. Notably, the salary which is US$919.0k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Hong Kong Metals and Mining industry with market capitalizations ranging between HK$7.8b and HK$25b had a median total CEO compensation of US$214k. Accordingly, our analysis reveals that Mongolian Mining Corporation pays Battsengel Gotov north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	US$919k	US$729k	53%
Other	US$816k	US$160k	47%
Total Compensation	US$1.7m	US$889k	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Mongolian Mining pays a modest slice of remuneration through salary, as compared 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.

Mongolian Mining Corporation's Growth

Mongolian Mining Corporation has seen its earnings per share (EPS) increase by 98% a year over the past three years. Its revenue is up 89% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Mongolian Mining Corporation Been A Good Investment?

Boasting a total shareholder return of 316% over three years, Mongolian Mining Corporation 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...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

Whatever your view on compensation, you might want to check if insiders are buying or selling Mongolian Mining shares (free trial).

Important note: Mongolian Mining 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com