Is Sino Land Company Limited (HKG:83) Overpaying Its CEO?
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The CEO of Sino Land Company Limited (HKG:83) is Robert Ng. First, this article will compare CEO compensation with compensation at other large 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Sino Land
How Does Robert Ng's Compensation Compare With Similar Sized Companies?
According to our data, Sino Land Company Limited has a market capitalization of HK$86b, and pays its CEO total annual compensation worth HK$1.3m. (This figure is for the year to June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$1.2m. We took a group of companies with market capitalizations over HK$63b, and calculated the median CEO total compensation to be HK$5.2m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Sino Land has changed over time.
Is Sino Land Company Limited Growing?
On average over the last three years, Sino Land Company Limited has grown earnings per share (EPS) by 12% each year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sino Land Company Limited Been A Good Investment?
Sino Land Company Limited has served shareholders reasonably well, with a total return of 22% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
It appears that Sino Land Company Limited remunerates its CEO below most large companies. Many would consider this to indicate that the pay is modest since the business is growing. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Robert Ng is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Sino Land shares (free trial).
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 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.
