Bingmu Xie became the CEO of China Infrastructure & Logistics Group Ltd. (HKG:1719) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for China Infrastructure & Logistics Group

How Does Bingmu Xie's Compensation Compare With Similar Sized Companies?

According to our data, China Infrastructure & Logistics Group Ltd. has a market capitalization of HK$1.2b, and paid its CEO total annual compensation worth HK$1.5m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.2m. We looked at a group of companies with market capitalizations from HK$775m to HK$3.1b, and the median CEO total compensation was HK$2.3m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of China Infrastructure & Logistics Group. Speaking on an industry level, we can see that nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. So it seems like there isn't a significant difference between China Infrastructure & Logistics Group and the broader market, in terms of salary allocation in the overall compensation package.

At first glance this seems like a real positive for shareholders, since Bingmu Xie is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at China Infrastructure & Logistics Group has changed over time.

Is China Infrastructure & Logistics Group Ltd. Growing?

China Infrastructure & Logistics Group Ltd. has reduced its earnings per share by an average of 13% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 34%.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.