This Is Why China Power International Development Limited's (HKG:2380) CEO Compensation Looks Appropriate

Key Insights

• China Power International Development's Annual General Meeting to take place on 6th of June
• Salary of CN¥456.0k is part of CEO Ping Gao's total remuneration
• The overall pay is comparable to the industry average
• China Power International Development's EPS grew by 7.7% over the past three years while total shareholder return over the past three years was 124%

CEO Ping Gao has done a decent job of delivering relatively good performance at China Power International Development Limited (HKG:2380) recently. As shareholders go into the upcoming AGM on 6th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for China Power International Development

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

At the time of writing, our data shows that China Power International Development Limited has a market capitalization of HK$46b, and reported total annual CEO compensation of CN¥1.2m for the year to December 2023. We note that's an increase of 18% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥456k.

On examining similar-sized companies in the Hong Kong Renewable Energy industry with market capitalizations between HK$31b and HK$94b, we discovered that the median CEO total compensation of that group was CN¥967k. This suggests that China Power International Development remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	CN¥456k	CN¥458k	37%
Other	CN¥792k	CN¥598k	63%
Total Compensation	CN¥1.2m	CN¥1.1m	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. China Power International Development sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

China Power International Development Limited's Growth

Over the past three years, China Power International Development Limited has seen its earnings per share (EPS) grow by 7.7% per year. In the last year, its revenue is up 3.9%.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has China Power International Development Limited Been A Good Investment?

Boasting a total shareholder return of 124% over three years, China Power International 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. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in China Power International Development we think you should know about.

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.