CGN Power Co., Ltd.'s (HKG:1816) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• CGN Power's Annual General Meeting to take place on 21st of May
• Total pay for CEO Ligang Gao includes CN¥383.2k salary
• The overall pay is comparable to the industry average
• Over the past three years, CGN Power's EPS grew by 0.04% and over the past three years, the total shareholder return was 40%

Our free stock report includes 1 warning sign investors should be aware of before investing in CGN Power. Read for free now.

CEO Ligang Gao has done a decent job of delivering relatively good performance at CGN Power Co., Ltd. (HKG:1816) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for CGN Power

How Does Total Compensation For Ligang Gao Compare With Other Companies In The Industry?

According to our data, CGN Power Co., Ltd. has a market capitalization of HK$182b, and paid its CEO total annual compensation worth CN¥1.2m over the year to December 2024. Notably, that's a decrease of 8.2% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥383k.

On comparing similar companies in the Hong Kong Renewable Energy industry with market capitalizations above HK$62b, we found that the median total CEO compensation was CN¥998k. This suggests that CGN Power remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	CN¥383k	CN¥366k	31%
Other	CN¥847k	CN¥974k	69%
Total Compensation	CN¥1.2m	CN¥1.3m	100%

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. It's interesting to note that CGN Power allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

CGN Power Co., Ltd.'s Growth

CGN Power Co., Ltd. saw earnings per share stay pretty flat over the last three years. Its revenue is up 5.0% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CGN Power Co., Ltd. Been A Good Investment?

Most shareholders would probably be pleased with CGN Power Co., Ltd. for providing a total return of 40% over three years. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for CGN Power that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.