Here's Why China Telecom Corporation Limited's (HKG:728) CEO May Have Their Pay Bumped Up

Key Insights

• China Telecom to hold its Annual General Meeting on 21st of May
• Total pay for CEO Ruiwen Ke includes CN¥245.0k salary
• The overall pay is 82% below the industry average
• China Telecom's EPS grew by 5.9% over the past three years while total shareholder return over the past three years was 149%

We've discovered 1 warning sign about China Telecom. View them for free.

Shareholders will probably not be disappointed by the robust results at China Telecom Corporation Limited (HKG:728) recently and they will be keeping this in mind as they go into the AGM on 21st of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for China Telecom

Comparing China Telecom Corporation Limited's CEO Compensation With The Industry

Our data indicates that China Telecom Corporation Limited has a market capitalization of HK$739b, and total annual CEO compensation was reported as CN¥758k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥245k.

On comparing similar companies in the Hong Kong Telecom industry with market capitalizations above HK$62b, we found that the median total CEO compensation was CN¥4.2m. That is to say, Ruiwen Ke is paid under the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥245k	CN¥240k	32%
Other	CN¥513k	CN¥504k	68%
Total Compensation	CN¥758k	CN¥744k	100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that China Telecom allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

China Telecom Corporation Limited's Growth

Over the past three years, China Telecom Corporation Limited has seen its earnings per share (EPS) grow by 5.9% per year. It achieved revenue growth of 3.3% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has China Telecom Corporation Limited Been A Good Investment?

Boasting a total shareholder return of 149% over three years, China Telecom Corporation Limited has done well by shareholders. 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.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for China Telecom that you should be aware of before investing.

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. 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.