Sai Wo Siu became the CEO of Sing Tao News Corporation Limited (HKG:1105) in 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Sai Wo Siu's Compensation Compare With Similar Sized Companies?
Our data indicates that Sing Tao News Corporation Limited is worth HK$1.3b, and total annual CEO compensation was reported as HK$7.2m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$6.5m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$780m to HK$3.1b. The median total CEO compensation was HK$2.3m.
Thus we can conclude that Sai Wo Siu receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sing Tao News Corporation Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Sing Tao News has changed from year to year.
Is Sing Tao News Corporation Limited Growing?
Sing Tao News Corporation Limited has reduced its earnings per share by an average of 28% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 7.4% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Sing Tao News Corporation Limited Been A Good Investment?
Boasting a total shareholder return of 103% over three years, Sing Tao News Corporation Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount Sing Tao News Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. On the other hand, returns have been good, so the company is doing something right. Considering this, shareholders are probably not too worried about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sing Tao News.
Important note: Sing Tao News may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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