Most Shareholders Will Probably Find That The CEO Compensation For Jiangsu Expressway Company Limited (HKG:177) Is Reasonable

Key Insights

• Jiangsu Expressway's Annual General Meeting to take place on 27th of June
• CEO Feng Wang's total compensation includes salary of CN¥96.2k
• The total compensation is similar to the average for the industry
• Over the past three years, Jiangsu Expressway's EPS grew by 7.3% and over the past three years, the total shareholder return was 79%

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CEO Feng Wang has done a decent job of delivering relatively good performance at Jiangsu Expressway Company Limited (HKG:177) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of June. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Jiangsu Expressway

How Does Total Compensation For Feng Wang Compare With Other Companies In The Industry?

According to our data, Jiangsu Expressway Company Limited has a market capitalization of HK$81b, and paid its CEO total annual compensation worth CN¥1.4m over the year to December 2024. That's a notable increase of 19% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥96k.

In comparison with other companies in the Hong Kong Infrastructure industry with market capitalizations over HK$63b, the reported median total CEO compensation was CN¥1.2m. So it looks like Jiangsu Expressway compensates Feng Wang in line with the median for the industry.

Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. Jiangsu Expressway sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Jiangsu Expressway Company Limited's Growth Numbers

Jiangsu Expressway Company Limited's earnings per share (EPS) grew 7.3% per year over the last three years. It achieved revenue growth of 63% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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 Jiangsu Expressway Company Limited Been A Good Investment?

Boasting a total shareholder return of 79% over three years, Jiangsu Expressway Company 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.

To Conclude...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Jiangsu Expressway (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.