Is King Stone Energy Group Limited's (HKG:663) CEO Overpaid Relative To Its Peers?

Hao Zong has been the CEO of King Stone Energy Group Limited (HKG:663) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for King Stone Energy Group

How Does Hao Zong's Compensation Compare With Similar Sized Companies?

Our data indicates that King Stone Energy Group Limited is worth HK$631m, and total annual CEO compensation was reported as HK$2.2m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$123k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

That means Hao Zong receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at King Stone Energy Group, below.

Is King Stone Energy Group Limited Growing?

Over the last three years King Stone Energy Group Limited has grown its earnings per share (EPS) by an average of 49% per year (using a line of best fit). In the last year, its revenue is up 108%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has King Stone Energy Group Limited Been A Good Investment?

With a three year total loss of 56%, King Stone Energy Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Hao Zong is paid around what is normal the leaders of comparable size companies.

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if King Stone Energy Group insiders are buying or selling shares.

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

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.

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. Thank you for reading.