Furong Si has been the CEO of China Communications Services Corporation Limited (HKG:552) since 2013. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Furong Si’s Compensation Compare With Similar Sized Companies?
According to our data, China Communications Services Corporation Limited has a market capitalization of HK$45.6b, and pays its CEO total annual compensation worth CN¥791k. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from CN¥27.7b to CN¥83.1b, and the median CEO compensation was CN¥3m.
A first glance this seems like a real positive for shareholders, since Furong Si is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at China Communications Services has changed over time.
Is China Communications Services Corporation Limited Growing?
China Communications Services Corporation Limited has increased its earnings per share (EPS) by an average of 8.1% a year, over the last three years It achieved revenue growth of 10% over the last year.
This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. Although we’ll stop short of calling the stock a top performer, we think the company has potential.
You might want to check this free visual report on analyst forecasts for future earnings.
Has China Communications Services Corporation Limited Been A Good Investment?
I think that the total shareholder return of 130%, over three years, would leave most China Communications Services Corporation Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It looks like China Communications Services Corporation Limited pays its CEO less than similar sized companies.
Furong Si receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling China Communications Services Corporation Limited shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.