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Is Hang Sang (Siu Po) International Holding Company Limited's (HKG:3626) CEO Pay Justified?

Simply Wall St

Samson Fung has been the CEO of Hang Sang (Siu Po) International Holding Company Limited (HKG:3626) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Hang Sang (Siu Po) International Holding

How Does Samson Fung's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Hang Sang (Siu Po) International Holding Company Limited has a market cap of HK$158m, and reported total annual CEO compensation of HK$2.0m for the year to June 2018. Notably, the salary of HK$1.9m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.

So Samson Fung is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Hang Sang (Siu Po) International Holding, below.

SEHK:3626 CEO Compensation, October 21st 2019

Is Hang Sang (Siu Po) International Holding Company Limited Growing?

Hang Sang (Siu Po) International Holding Company Limited has increased its earnings per share (EPS) by an average of 4.6% a year, over the last three years (using a line of best fit). It saw its revenue drop 23% over the last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hang Sang (Siu Po) International Holding Company Limited Been A Good Investment?

With a three year total loss of 61%, Hang Sang (Siu Po) International Holding Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Samson Fung is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hang Sang (Siu Po) International Holding (free visualization of insider trades).

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.

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.