Thomas Ng is the CEO of Jinhui Shipping and Transportation Limited (OB:JIN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Thomas Ng’s Compensation Compare With Similar Sized Companies?
Our data indicates that Jinhui Shipping and Transportation Limited is worth kr386m, and total annual CEO compensation was reported as US$3.4m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$2.8m. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$366k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of Jinhui Shipping and Transportation. On a sector level, around 76% of total compensation represents salary and 24% is other remuneration. So it seems like there isn’t a significant difference between Jinhui Shipping and Transportation and the broader market, in terms of salary allocation in the overall compensation package.
As you can see, Thomas Ng is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Jinhui Shipping and Transportation Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Jinhui Shipping and Transportation has changed over time.
Is Jinhui Shipping and Transportation Limited Growing?
Over the last three years Jinhui Shipping and Transportation Limited has grown its earnings per share (EPS) by an average of 126% per year (using a line of best fit). In the last year, its revenue is down 17%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Although we don’t have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Jinhui Shipping and Transportation Limited Been A Good Investment?
With a three year total loss of 64%, Jinhui Shipping and Transportation Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Jinhui Shipping and Transportation Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. CEO compensation is an important area to keep your eyes on, but we’ve also identified 5 warning signs for Jinhui Shipping and Transportation (2 are concerning!) that you should be aware of before investing here.
If you want to buy a stock that is better than Jinhui Shipping and Transportation, this free list of high return, low debt companies is a great place to look.
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