Is China Environmental Sources Group Restricted’s (HKG:1130) CEO Pay Truthful?

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Chi Cling Yeung has been the CEO of China Environmental Sources Group Restricted (HKG:1130) since 2015. This evaluation goals first to distinction CEO compensation with different firms which have comparable market capitalization. Subsequent, we’ll contemplate progress that the enterprise demonstrates. And at last we are going to replicate on how widespread stockholders have fared in the previous couple of years, as a secondary measure of efficiency. This course of ought to give us an thought about how appropriately the CEO is paid.

View our {latest} evaluation for China Environmental Sources Group

How Does Chi Cling Yeung’s Compensation Examine With Related Sized Corporations?

In keeping with our information, China Environmental Sources Group Restricted has a market capitalization of HK$173m, and paid its CEO complete annual compensation price HK$1.7m over the yr to June 2019. We expect complete compensation is extra essential however we word that the CEO wage is decrease, at . We word that greater than half of the overall compensation shouldn’t be the wage; and efficiency necessities could apply to this non-salary portion. We checked out a gaggle of firms with market capitalizations beneath HK$1.6b, and the median CEO complete compensation was HK$1.8m.

So Chi Cling Yeung receives an analogous quantity to the median CEO pay, amongst the businesses we checked out. Whereas this information level is not notably informative alone, it positive aspects extra that means when thought-about with enterprise efficiency.

The graphic under reveals how CEO compensation at China Environmental Sources Group has modified from yr to yr.

SEHK:1130 CEO Compensation, March 1st 2020

Is China Environmental Sources Group Restricted Rising?

On common during the last three years, China Environmental Sources Group Restricted has shrunk earnings per share by 22% every year (measured with a line of finest match). It noticed its income drop 44% during the last yr.

Few shareholders can be happy to learn that earnings per share are decrease over three years. That is compounded by the very fact income is definitely down on final yr. It is arduous to argue the corporate is firing on all cylinders, so shareholders may be averse to excessive CEO remuneration. Though we do not have analyst forecasts shareholders may need to study this detailed historic graph of earnings, income and money movement.

Has China Environmental Sources Group Restricted Been A Good Funding?

With a 3 yr complete lack of 62%, China Environmental Sources Group Restricted will surely have some dissatisfied shareholders. So shareholders would in all probability suppose the corporate should not be too beneficiant with CEO compensation.

In Abstract…

Chi Cling Yeung is paid across the identical as most CEOs of comparable dimension firms.

The corporate is not rising EPS, and shareholder returns have been disappointing. Most would contemplate it prudent for the corporate to carry off any CEO pay rise till efficiency improves. So it’s possible you’ll need to verify if insiders are shopping for China Environmental Sources Group shares with their very own cash (free entry).

Vital word: China Environmental Sources Group is probably not the most effective inventory to purchase. You may discover one thing higher on this record of attention-grabbing firms with excessive ROE and low debt.

Should you spot an error that warrants correction, please contact the editor at [email protected] This text by Merely Wall St is normal in nature. It doesn’t represent a suggestion to purchase or promote any inventory, and doesn’t take account of your targets, or your monetary state of affairs. Merely Wall St has no place within the shares talked about.

We purpose to carry you long-term centered analysis evaluation pushed by elementary information. Word that our evaluation could not issue within the {latest} price-sensitive firm bulletins or qualitative materials. Thanks for studying.



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