Yue Li became the CEO of China Mobile Limited (HKG:941) in 2010. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for China Mobile

How Does Yue Li's Compensation Compare With Similar Sized Companies?

Our data indicates that China Mobile Limited is worth HK$1.4t, and total annual CEO compensation is CN¥1.2m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥1.0m. We looked at a group of companies with market capitalizations over CN¥57b and the median CEO total compensation was CN¥5.3m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at China Mobile has changed from year to year.

Is China Mobile Limited Growing?

Earnings per share at China Mobile Limited are much the same as they were three years ago, albeit with a positive trend. It saw its revenue drop -1.2% over the last year.

I generally like to see a little revenue growth, but I'm happy with the modest EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.

Has China Mobile Limited Been A Good Investment?

With a three year total loss of 18%, China Mobile Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like China Mobile Limited pays its CEO less than the average at large companies.

It's well worth noting that while Yue Li is paid less than most company leaders (at larger companies), share price performance has been somewhat uninspiring, and total returns have been lacking. So while shareholders shouldn't be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. Whatever your view on compensation, you might want to check if insiders are buying or selling China Mobile shares (free trial).

If you want to buy a stock that is better than China Mobile, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.