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In 2008 Eric Oei was appointed CEO of China Renewable Energy Investment Limited (HKG:987). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Eric Oei’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Renewable Energy Investment Limited has a market cap of HK$564m, and is paying total annual CEO compensation of HK$1.3m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$1.1m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO compensation to be HK$1.7m.
So Eric Oei receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at China Renewable Energy Investment has changed over time.
Is China Renewable Energy Investment Limited Growing?
On average over the last three years, China Renewable Energy Investment Limited has grown earnings per share (EPS) by 19% each year (using a line of best fit). Its revenue is up 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China Renewable Energy Investment Limited Been A Good Investment?
Boasting a total shareholder return of 41% over three years, China Renewable Energy Investment 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.
Eric Oei is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying China Renewable Energy Investment shares with their own money (free access).
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.
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 firstname.lastname@example.org.