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In 2016 Zhiliang Han was appointed CEO of Beijing Capital International Airport Company Limited (HKG:694). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Zhiliang Han’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Beijing Capital International Airport Company Limited has a market cap of HK$32b, and is paying total annual CEO compensation of CN¥905k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at CN¥327k. We looked at a group of companies with market capitalizations from CN¥13b to CN¥43b, and the median CEO compensation was CN¥3.9m.
Most shareholders would consider it a positive that Zhiliang Han takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Beijing Capital International Airport has changed over time.
Is Beijing Capital International Airport Company Limited Growing?
Beijing Capital International Airport Company Limited has increased its earnings per share (EPS) by an average of 22% a year, over the last three years (using a line of best fit). Its revenue is up 13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Beijing Capital International Airport Company Limited Been A Good Investment?
Beijing Capital International Airport Company Limited has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
It looks like Beijing Capital International Airport Company Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that Zhiliang Han is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. So you may want to check if insiders are buying Beijing Capital International Airport shares with their own money (free access).
If you want to buy a stock that is better than Beijing Capital International Airport, this free list of high return, low debt companies is a great place to look.
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.