We believe shareholders might consider being more generous with China Resources Land Limited CEO compensation package (HKG: 1109)
Decent performance at China Resources Land Limited (HKG: 1109) recently will appeal to most shareholders as they head to the AGM on June 9, 2021. They will likely be more interested in hearing the board discuss future initiatives to further improve the business then that they vote on resolutions such as executive compensation. . Here’s our take on why we think CEO pay is fair and may even justify a raise.
Check out our latest analysis for China Resources Land
How does Xin Li’s total compensation compare to other companies in the industry?
According to our data, China Resources Land Limited has a market capitalization of HK $ 262 billion and paid its CEO a total annual compensation of CN ¥ 6.9 million in the year until December 2020. This is a notable drop of 17% from last year. We think the total compensation is more important, but our data shows that the CEO salary is less, at CN 1.8 million.
Compared with other companies in the industry with market capitalizations exceeding HK $ 62 billion, the median total CEO compensation was CN ¥ 15 million. This suggests that Xin Li is paid below the industry median. In addition, Xin Li directly owns HK $ 1.5 million in company stock, which implies that they are deeply invested in the success of the company.
|Salary||CN ¥ 1.8m||CN ¥ 1.8m||26%|
|Other||CN ¥ 5.1m||CN ¥ 6.4m||74%|
|Total compensation||CN ¥ 6.9m||CN ¥ 8.2m||100%|
At the industry level, almost 70% of total compensation is salary, while the remainder 30% is other compensation. China Resources Land pays a modest amount of compensation through salary, compared to the industry as a whole. If non-salary compensation dominates total salary, it is an indicator that the executive salary is linked to the performance of the company.
A look at the growth figures of China Resources Land Limited
Over the past three years, China Resources Land Limited has seen its earnings per share (EPS) increase by 14% per year. Its turnover is up 21% compared to last year.
Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. It’s also good to see decent revenue growth over the past year, which suggests the business is healthy and growing. Historical performance can sometimes be a good indicator of what happens next, but if you want to take a look at the future of the business, this might be of interest to you. free viewing analyst forecasts.
Has China Resources Land Limited been a good investment?
China Resources Land Limited has served its shareholders reasonably well, with a total return of 31% over three years. But they probably don’t want the CEO to be paid more than normal for companies of the same size.
Although the company appears to be heading in the right direction in terms of performance, there is always room for improvement. Assuming the company continues to grow at a good pace, few shareholders would object to CEO pay. In fact, strategic decisions that could impact the future of the business might be a much more interesting topic for investors as it would help them set their longer-term expectations.
CEO compensation is just one of the many factors that should be taken into account when reviewing company performance. In our study, we found 2 warning signs for China Resources Land you have to be aware of this, and one of them cannot be ignored.
Arguably, the quality of the company is much more important than the compensation levels of CEOs. So look at this free list of interesting companies that have a HIGH return on equity and low leverage.
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