Yahoo Finance How Much is Geely Automobile Holdings Limited's (HKG:175) CEO Getting Paid?
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Sheng Yue Gui has been the CEO of Geely Automobile Holdings Limited (HKG:175) since 2006. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Geely Automobile Holdings
How Does Sheng Yue Gui's Compensation Compare With Similar Sized Companies?
Our data indicates that Geely Automobile Holdings Limited is worth HK$118b, and total annual CEO compensation is CNÂĄ5.7m. (This number is for the twelve months until December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at CNÂĄ3.0m. We looked at a group of companies with market capitalizations over CNÂĄ55b and the median CEO total compensation was CNÂĄ3.3m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
As you can see, Sheng Yue Gui is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Geely Automobile Holdings Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Geely Automobile Holdings, below.
Is Geely Automobile Holdings Limited Growing?
Over the last three years Geely Automobile Holdings Limited has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Geely Automobile Holdings Limited Been A Good Investment?
I think that the total shareholder return of 224%, over three years, would leave most Geely Automobile Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by Geely Automobile Holdings Limited, and compared it to remuneration at a group of other large companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Geely Automobile Holdings (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
