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How Much is China Overseas Land & Investment Limited's (HKG:688) CEO Getting Paid?

In 2017 Jianguo Yan was appointed CEO of China Overseas Land & Investment Limited (HKG:688). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for China Overseas Land & Investment

How Does Jianguo Yan's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that China Overseas Land & Investment Limited has a market cap of HK$302b, and is paying total annual CEO compensation of HK$6.5m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.9m. When we examined a group of companies with market caps over HK$63b, we found that their median CEO total compensation was HK$6.0m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

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So Jianguo Yan is paid around the average of 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.

You can see, below, how CEO compensation at China Overseas Land & Investment has changed over time.

SEHK:688 CEO Compensation, July 31st 2019
SEHK:688 CEO Compensation, July 31st 2019

Is China Overseas Land & Investment Limited Growing?

On average over the last three years, China Overseas Land & Investment Limited has grown earnings per share (EPS) by 3.1% each year (using a line of best fit). In the last year, its revenue is up 3.5%.

I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has China Overseas Land & Investment Limited Been A Good Investment?

With a total shareholder return of 17% over three years, China Overseas Land & Investment Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Jianguo Yan is close enough to the median pay for a CEO of a large company .

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. Whatever your view on compensation, you might want to check if insiders are buying or selling China Overseas Land & Investment shares (free trial).

Important note: China Overseas Land & Investment may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 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. Thank you for reading.