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Is Sino-Global Shipping America, Ltd. (NASDAQ:SINO) Overpaying Its CEO?

Simply Wall St

In 2001 Lei Cao was appointed CEO of Sino-Global Shipping America, Ltd. (NASDAQ:SINO). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Sino-Global Shipping America

How Does Lei Cao’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Sino-Global Shipping America, Ltd. has a market cap of US$15m, and is paying total annual CEO compensation of US$525k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$180k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$417k.

So Lei Cao receives a similar amount to the median CEO pay, amongst 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.

You can see a visual representation of the CEO compensation at Sino-Global Shipping America, below.

NasdaqCM:SINO CEO Compensation, March 11th 2019

Is Sino-Global Shipping America, Ltd. Growing?

Sino-Global Shipping America, Ltd. has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 64%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Sino-Global Shipping America, Ltd. Been A Good Investment?

I think that the total shareholder return of 48%, over three years, would leave most Sino-Global Shipping America, Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Lei Cao is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sino-Global Shipping America.

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.