In 2013 Jing Fu Liu was appointed CEO of China Sunsine Chemical Holdings Ltd. (SGX:QES). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
How Does Jing Fu Liu's Compensation Compare With Similar Sized Companies?
Our data indicates that China Sunsine Chemical Holdings Ltd. is worth S$517m, and total annual CEO compensation was reported as CN¥115k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥58k. We examined companies with market caps from S$270m to S$1.1b, and discovered that the median CEO total compensation of that group was S$1.0m.
Most shareholders would consider it a positive that Jing Fu Liu takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at China Sunsine Chemical Holdings, below.
Is China Sunsine Chemical Holdings Ltd. Growing?
Over the last three years China Sunsine Chemical Holdings Ltd. has grown its earnings per share (EPS) by an average of 33% per year (using a line of best fit). In the last year, its revenue is down 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has China Sunsine Chemical Holdings Ltd. Been A Good Investment?
I think that the total shareholder return of 123%, over three years, would leave most China Sunsine Chemical Holdings Ltd. shareholders smiling. 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.
It appears that China Sunsine Chemical Holdings Ltd. remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Jing Fu Liu deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying China Sunsine Chemical Holdings shares with their own money (free access).
If you want to buy a stock that is better than China Sunsine Chemical Holdings, this free list of high return, low debt companies is a great place to look.
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