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The CEO of Hi Sun Technology (China) Limited (HKG:818) is Man Kui. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Man Kui's Compensation Compare With Similar Sized Companies?
Our data indicates that Hi Sun Technology (China) Limited is worth HK$3.2b, and total annual CEO compensation is HK$8.5m. (This figure is for the year to December 2018). That's a notable increase of 8.8% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.3m. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.3b, we found the median CEO total compensation was HK$2.1m.
Thus we can conclude that Man Kui receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hi Sun Technology (China) Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Hi Sun Technology (China) has changed from year to year.
Is Hi Sun Technology (China) Limited Growing?
On average over the last three years, Hi Sun Technology (China) Limited has grown earnings per share (EPS) by 5.5% each year (using a line of best fit). It achieved revenue growth of 60% over the last year.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Shareholders might be interested in this free visualization of analyst forecasts.
Has Hi Sun Technology (China) Limited Been A Good Investment?
Since shareholders would have lost about 4.3% over three years, some Hi Sun Technology (China) Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Hi Sun Technology (China) Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. This doesn't look great when you consider CEO remuneration is up on last year. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hi Sun Technology (China).
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 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.