Kwan Sing Lam has been the CEO of SFund International Holdings Limited (HKG:1367) since 2016. 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. 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.
How Does Kwan Sing Lam's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that SFund International Holdings Limited has a market cap of HK$1.1b, and reported total annual CEO compensation of HK$3.1m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$3.1m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.7m.
As you can see, Kwan Sing Lam is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SFund International Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at SFund International Holdings has changed over time.
Is SFund International Holdings Limited Growing?
Over the last three years SFund International Holdings Limited has shrunk its earnings per share by an average of 77% per year (measured with a line of best fit). Its revenue is down 71% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has SFund International Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with SFund International Holdings Limited for providing a total return of 44% over three years. 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.
We compared total CEO remuneration at SFund International Holdings Limited with the amount paid at companies with a similar market capitalization. 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. However, we can't argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SFund International Holdings (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.