Most Shareholders Will Probably Agree With Ocean Line Port Development Limited's (HKG:8502) CEO Compensation

Key Insights

• Ocean Line Port Development to hold its Annual General Meeting on 29th of May
• Total pay for CEO Xueliang Huang includes CN¥640.0k salary
• The overall pay is comparable to the industry average
• Ocean Line Port Development's EPS grew by 9.9% over the past three years while total shareholder return over the past three years was 60%

Performance at Ocean Line Port Development Limited (HKG:8502) has been reasonably good and CEO Xueliang Huang has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of May. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Ocean Line Port Development

Comparing Ocean Line Port Development Limited's CEO Compensation With The Industry

Our data indicates that Ocean Line Port Development Limited has a market capitalization of HK$244m, and total annual CEO compensation was reported as CN¥880k for the year to December 2023. That's a slight decrease of 6.9% on the prior year. In particular, the salary of CN¥640.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Infrastructure industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥831k. This suggests that Ocean Line Port Development remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	CN¥640k	CN¥640k	73%
Other	CN¥240k	CN¥305k	27%
Total Compensation	CN¥880k	CN¥945k	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. It's interesting to note that Ocean Line Port Development pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Ocean Line Port Development Limited's Growth Numbers

Over the past three years, Ocean Line Port Development Limited has seen its earnings per share (EPS) grow by 9.9% per year. It saw its revenue drop 7.4% over the last year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Ocean Line Port Development Limited Been A Good Investment?

Boasting a total shareholder return of 60% over three years, Ocean Line Port Development Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Ocean Line Port Development that you should be aware of before investing.

Switching gears from Ocean Line Port Development, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.