Stock Analysis

How Much is CITIC Telecom International Holdings Limited's (HKG:1883) CEO Getting Paid?

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In 2015 Tiger Lin was appointed CEO of CITIC Telecom International Holdings Limited (HKG:1883). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for CITIC Telecom International Holdings

How Does Tiger Lin's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that CITIC Telecom International Holdings Limited has a market cap of HK$10b, and reported total annual CEO compensation of HK$9.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$4.2m. We examined companies with market caps from HK$7.8b to HK$25b, and discovered that the median CEO total compensation of that group was HK$3.9m.

It would therefore appear that CITIC Telecom International Holdings Limited pays Tiger Lin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at CITIC Telecom International Holdings, below.

SEHK:1883 CEO Compensation, September 29th 2019
SEHK:1883 CEO Compensation, September 29th 2019

Is CITIC Telecom International Holdings Limited Growing?

Over the last three years CITIC Telecom International Holdings Limited has grown its earnings per share (EPS) by an average of 3.5% per year (using a line of best fit). Its revenue is up 1.7% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has CITIC Telecom International Holdings Limited Been A Good Investment?

With a total shareholder return of 18% over three years, CITIC Telecom International Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared the total CEO remuneration paid by CITIC Telecom International Holdings Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Shareholders may want to check for free if CITIC Telecom International Holdings insiders are buying or selling shares.

If you want to buy a stock that is better than CITIC Telecom International Holdings, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.