The CEO of Jinhui Shipping and Transportation Limited (OB:JIN) is Thomas Ng, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Jinhui Shipping and Transportation
Comparing Jinhui Shipping and Transportation Limited's CEO Compensation With the industry
Our data indicates that Jinhui Shipping and Transportation Limited has a market capitalization of kr376m, and total annual CEO compensation was reported as US$3.6m for the year to December 2019. That's a modest increase of 6.6% on the prior year. We note that the salary portion, which stands at US$3.08m constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below kr1.7b, we found that the median total CEO compensation was US$144k. Hence, we can conclude that Thomas Ng is remunerated higher than the industry median. Furthermore, Thomas Ng directly owns kr3.9m worth of shares in the company.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$3.1m | US$2.8m | 85% |
| Other | US$561k | US$645k | 15% |
| Total Compensation | US$3.6m | US$3.4m | 100% |
On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that Jinhui Shipping and Transportation pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Jinhui Shipping and Transportation Limited's Growth
Over the past three years, Jinhui Shipping and Transportation Limited has seen its earnings per share (EPS) grow by 64% per year. Its revenue is down 15% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Jinhui Shipping and Transportation Limited Been A Good Investment?
Since shareholders would have lost about 59% over three years, some Jinhui Shipping and Transportation Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As previously discussed, Thomas is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Thomas is earning a very handsome sum.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Jinhui Shipping and Transportation that investors should be aware of in a dynamic business environment.
Switching gears from Jinhui Shipping and Transportation, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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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About OB:JIN
Jinhui Shipping and Transportation
An investment holding company, engages in ship chartering and owning activities internationally.
Excellent balance sheet and slightly overvalued.
