What Can We Conclude About Korea Zinc Company's (KRX:010130) CEO Pay?

The CEO of Korea Zinc Company, Ltd. (KRX:010130) is Yun Beom Choi, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Korea Zinc Company pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Korea Zinc Company

How Does Total Compensation For Yun Beom Choi Compare With Other Companies In The Industry?

Our data indicates that Korea Zinc Company, Ltd. has a market capitalization of ₩6.9t, and total annual CEO compensation was reported as ₩748m for the year to December 2019. We note that's an increase of 47% above last year. Notably, the salary which is ₩379.8m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₩4.4t to ₩13t, we found that the median CEO total compensation was ₩636m. From this we gather that Yun Beom Choi is paid around the median for CEOs in the industry. What's more, Yun Beom Choi holds ₩135b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 93% of total compensation out of all the companies we analyzed, while other remuneration made up 6.7% of the pie. Korea Zinc Company pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Korea Zinc Company, Ltd.'s Growth Numbers

Korea Zinc Company, Ltd. has reduced its earnings per share by 5.6% a year over the last three years. Its revenue is up 6.7% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Korea Zinc Company, Ltd. Been A Good Investment?

With a three year total loss of 9.4% for the shareholders, Korea Zinc Company, Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Korea Zinc Company pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Korea Zinc Company (free visualization of insider trades).

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This article by Simply Wall St is general in nature. 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.
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