How Much Is China Communications Media Group Co., Ltd. (GTSM:6404) CEO Getting Paid?

James Chang became the CEO of China Communications Media Group Co., Ltd. (GTSM:6404) in 2011, and we think it's a good time to look at 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.

See our latest analysis for China Communications Media Group

How Does Total Compensation For James Chang Compare With Other Companies In The Industry?

At the time of writing, our data shows that China Communications Media Group Co., Ltd. has a market capitalization of NT$224m, and reported total annual CEO compensation of NT$4.6m for the year to December 2019. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth NT$4.6m.

For comparison, other companies in the industry with market capitalizations below NT$5.6b, reported a median total CEO compensation of NT$1.9m. Hence, we can conclude that James Chang is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.4% of the pie. Speaking on a company level, China Communications Media Group prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

China Communications Media Group Co., Ltd.'s Growth

China Communications Media Group Co., Ltd.'s earnings per share (EPS) grew 55% per year over the last three years. It saw its revenue drop 40% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has China Communications Media Group Co., Ltd. Been A Good Investment?

With a three year total loss of 63% for the shareholders, China Communications Media Group Co., Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

China Communications Media Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, China Communications Media Group Co., Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 5 warning signs for China Communications Media Group (of which 3 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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. 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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