Minghui Wei has been the CEO of Dalian Port (PDA) Company Limited (HKG:2880) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Minghui Wei’s Compensation Compare With Similar Sized Companies?
According to our data, Dalian Port (PDA) Company Limited has a market capitalization of HK$23b, and paid its CEO total annual compensation worth CN¥373k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CN¥14b to CN¥45b, we found the median CEO total compensation was CN¥3.9m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Dalian Port (PDA) has changed over time.
Is Dalian Port (PDA) Company Limited Growing?
On average over the last three years, Dalian Port (PDA) Company Limited has grown earnings per share (EPS) by 5.3% each year (using a line of best fit). It saw its revenue drop 24% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Although we don’t have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Dalian Port (PDA) Company Limited Been A Good Investment?
With a three year total loss of 25%, Dalian Port (PDA) Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Dalian Port (PDA) Company Limited is currently paying its CEO below what is normal for companies of its size.
Minghui Wei is paid less than CEOs of similar size companies, but growth hasn’t been particularly impressive and the total shareholder return over three years would leave many disappointed. So while shareholders shouldn’t be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. So you may want to check if insiders are buying Dalian Port (PDA) shares with their own money (free access).
If you want to buy a stock that is better than Dalian Port (PDA), this free list of high return, low debt companies is a great place to look.
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