Key Insights

• Zijin Mining Group's Annual General Meeting to take place on 17th of May
• Salary of CN¥3.00m is part of CEO Laichang Zou's total remuneration
• The overall pay is 150% above the industry average
• Zijin Mining Group's EPS grew by 40% over the past three years while total shareholder return over the past three years was 65%

Performance at Zijin Mining Group Company Limited (HKG:2899) has been reasonably good and CEO Laichang Zou has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of May. However, some shareholders may still want to keep CEO compensation within reason.

How Does Total Compensation For Laichang Zou Compare With Other Companies In The Industry?

At the time of writing, our data shows that Zijin Mining Group Company Limited has a market capitalization of HK$510b, and reported total annual CEO compensation of CN¥8.0m for the year to December 2023. That's a notable decrease of 39% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥3.0m.

For comparison, other companies in the Hong Kong Metals and Mining industry with market capitalizations above HK$63b, reported a median total CEO compensation of CN¥3.2m. Hence, we can conclude that Laichang Zou is remunerated higher than the industry median. What's more, Laichang Zou holds HK$53m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 88% of total compensation represents salary and 12% is other remuneration. It's interesting to note that Zijin Mining Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Zijin Mining Group Company Limited's Growth Numbers

Over the past three years, Zijin Mining Group Company Limited has seen its earnings per share (EPS) grow by 40% per year. It achieved revenue growth of 4.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Zijin Mining Group Company Limited Been A Good Investment?

Boasting a total shareholder return of 65% over three years, Zijin Mining Group Company Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Zijin Mining Group that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.