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What Did Jinchuan Group International Resources Co. Ltd's (HKG:2362) CEO Take Home Last Year?

In 2017 Tianpeng Gao was appointed CEO of Jinchuan Group International Resources Co. Ltd (HKG:2362). 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Jinchuan Group International Resources

How Does Tianpeng Gao's Compensation Compare With Similar Sized Companies?

Our data indicates that Jinchuan Group International Resources Co. Ltd is worth HK$9.0b, and total annual CEO compensation was reported as US$99k for the year to December 2018. Notably, the salary of US$97k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$498k.

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Most shareholders would consider it a positive that Tianpeng Gao takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Jinchuan Group International Resources, below.

SEHK:2362 CEO Compensation, February 20th 2020
SEHK:2362 CEO Compensation, February 20th 2020

Is Jinchuan Group International Resources Co. Ltd Growing?

On average over the last three years, Jinchuan Group International Resources Co. Ltd has grown earnings per share (EPS) by 78% each year (using a line of best fit). In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jinchuan Group International Resources Co. Ltd Been A Good Investment?

Given the total loss of 25% over three years, many shareholders in Jinchuan Group International Resources Co. Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Jinchuan Group International Resources Co. Ltd is currently paying its CEO below what is normal for companies of its size.

Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Tianpeng Gao receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Whatever your view on compensation, you might want to check if insiders are buying or selling Jinchuan Group International Resources shares (free trial).

If you want to buy a stock that is better than Jinchuan Group International Resources, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.