In 1996 Simon Kwok was appointed CEO of Sa Sa International Holdings Limited (HKG:178). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Simon Kwok's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sa Sa International Holdings Limited has a market cap of HK$6.0b, and reported total annual CEO compensation of HK$3.1m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at HK$2.9m. When we examined a selection of companies with market caps ranging from HK$3.1b to HK$13b, we found the median CEO total compensation was HK$3.2m.
So Simon Kwok is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Sa Sa International Holdings has changed from year to year.
Is Sa Sa International Holdings Limited Growing?
Over the last three years Sa Sa International Holdings Limited has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 4.5% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sa Sa International Holdings Limited Been A Good Investment?
With a three year total loss of 37%, Sa Sa International Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Simon Kwok is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sa Sa International Holdings.
If you want to buy a stock that is better than Sa Sa International Holdings, this free list of high return, low debt companies is a great place to look.
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