Key Insights

• CGN Mining to hold its Annual General Meeting on 20th of June
• Total pay for CEO Junjing An includes HK$950.0k salary
• The total compensation is 33% less than the average for the industry
• CGN Mining's EPS grew by 41% over the past three years while total shareholder return over the past three years was 285%

The impressive results at CGN Mining Company Limited (HKG:1164) recently will be great news for shareholders. At the upcoming AGM on 20th of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Comparing CGN Mining Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that CGN Mining Company Limited has a market capitalization of HK$20b, and reported total annual CEO compensation of HK$950k for the year to December 2023. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$950k.

On examining similar-sized companies in the Hong Kong Oil and Gas industry with market capitalizations between HK$16b and HK$50b, we discovered that the median CEO total compensation of that group was HK$1.4m. In other words, CGN Mining pays its CEO lower than the industry median.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. Speaking on a company level, CGN Mining prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at CGN Mining Company Limited's Growth Numbers

CGN Mining Company Limited's earnings per share (EPS) grew 41% per year over the last three years. In the last year, its revenue is up 102%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has CGN Mining Company Limited Been A Good Investment?

Most shareholders would probably be pleased with CGN Mining Company Limited for providing a total return of 285% over three years. 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...

CGN Mining rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for CGN Mining that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.