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Weiping Ma has been the CEO of West China Cement Limited (HKG:2233) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Weiping Ma's Compensation Compare With Similar Sized Companies?
According to our data, West China Cement Limited has a market capitalization of HK$7.5b, and pays its CEO total annual compensation worth CN¥3.8m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥3.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥2.8b to CN¥11b. The median total CEO compensation was CN¥3.0m.
So Weiping Ma receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at West China Cement has changed from year to year.
Is West China Cement Limited Growing?
West China Cement Limited has increased its earnings per share (EPS) by an average of 107% a year, over the last three years (using a line of best fit). Its revenue is up 24% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has West China Cement Limited Been A Good Investment?
Boasting a total shareholder return of 89% over three years, West China Cement Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Weiping Ma is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling West China Cement shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.