Yahoo Finance Should You Worry About Yanchang Petroleum International Limited's (HKG:346) CEO Pay Cheque?
Bruno Guy Deruyck became the CEO of Yanchang Petroleum International Limited (HKG:346) in 2016. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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Check out our latest analysis for Yanchang Petroleum International
How Does Bruno Guy Deruyck's Compensation Compare With Similar Sized Companies?
According to our data, Yanchang Petroleum International Limited has a market capitalization of HK$1.3b, and pays its CEO total annual compensation worth HK$6.9m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$3.5m. We looked at a group of companies with market capitalizations from HK$785m to HK$3.1b, and the median CEO total compensation was HK$1.7m.
As you can see, Bruno Guy Deruyck is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Yanchang Petroleum International Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Yanchang Petroleum International has changed over time.
Is Yanchang Petroleum International Limited Growing?
On average over the last three years, Yanchang Petroleum International Limited has grown earnings per share (EPS) by 125% each year (using a line of best fit). In the last year, its revenue is up 45%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yanchang Petroleum International Limited Been A Good Investment?
With a three year total loss of 51%, Yanchang Petroleum International Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Yanchang Petroleum International Limited with the amount paid at companies with a similar market capitalization. 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. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Yanchang Petroleum International shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.
