How Much Did Sunny Optical Technology (Group) Company Limited's (HKG:2382) CEO Pocket Last Year?
Yang Sun has been the CEO of Sunny Optical Technology (Group) Company Limited (HKG:2382) since 2012. First, this article will compare CEO compensation with compensation at other large companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Sunny Optical Technology (Group)
How Does Yang Sun's Compensation Compare With Similar Sized Companies?
According to our data, Sunny Optical Technology (Group) Company Limited has a market capitalization of HK$123b, and paid its CEO total annual compensation worth CN¥2.0m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥863k. When we examined a group of companies with market caps over CN¥56b, we found that their median CEO total compensation was CN¥5.7m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Sunny Optical Technology (Group) stands. On a sector level, around 77% of total compensation represents salary and 23% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Sunny Optical Technology (Group), in sharp contrast to the overall sector.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at Sunny Optical Technology (Group) has changed from year to year.
Is Sunny Optical Technology (Group) Company Limited Growing?
Sunny Optical Technology (Group) Company Limited has seen earnings per share (EPS) move positively by an average of 23% a year, over the last three years (using a line of best fit). It achieved revenue growth of 46% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sunny Optical Technology (Group) Company Limited Been A Good Investment?
Most shareholders would probably be pleased with Sunny Optical Technology (Group) Company Limited for providing a total return of 108% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Sunny Optical Technology (Group) Company Limited is currently paying its CEO below what is normal for large companies.
Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Yang Sun deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. On another note, we've spotted 2 warning signs for Sunny Optical Technology (Group) that investors should look into moving forward.
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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