We Think The Compensation For Ocean Line Port Development Limited's (HKG:8502) CEO Looks About Right

Key Insights

• Ocean Line Port Development to hold its Annual General Meeting on 28th of May
• CEO Xueliang Huang's total compensation includes salary of CN¥640.0k
• The total compensation is similar to the average for the industry
• Ocean Line Port Development's total shareholder return over the past three years was 44% while its EPS grew by 4.7% over the past three years

We've discovered 1 warning sign about Ocean Line Port Development. View them for free.

CEO Xueliang Huang has done a decent job of delivering relatively good performance at Ocean Line Port Development Limited (HKG:8502) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of May. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Ocean Line Port Development

How Does Total Compensation For Xueliang Huang Compare With Other Companies In The Industry?

Our data indicates that Ocean Line Port Development Limited has a market capitalization of HK$224m, and total annual CEO compensation was reported as CN¥880k for the year to December 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at CN¥640.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Infrastructure industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥878k. From this we gather that Xueliang Huang is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	CN¥640k	CN¥640k	73%
Other	CN¥240k	CN¥240k	27%
Total Compensation	CN¥880k	CN¥880k	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Ocean Line Port Development pays out 73% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Ocean Line Port Development Limited has seen its earnings per share (EPS) increase by 4.7% a year over the past three years. It achieved revenue growth of 2.0% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ocean Line Port Development Limited Been A Good Investment?

Boasting a total shareholder return of 44% over three years, Ocean Line Port Development 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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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 Ocean Line Port Development that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.