Hengde Qin became the CEO of Sinofert Holdings Limited (HKG:297) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Hengde Qin's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sinofert Holdings Limited has a market cap of HK$5.5b, and reported total annual CEO compensation of CN¥6.1m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥1.8m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from CN¥2.8b to CN¥11b, and discovered that the median CEO total compensation of that group was CN¥3.0m.
It would therefore appear that Sinofert Holdings Limited pays Hengde Qin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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 Sinofert Holdings has changed from year to year.
Is Sinofert Holdings Limited Growing?
Sinofert Holdings Limited has increased its earnings per share (EPS) by an average of 61% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 19%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sinofert Holdings Limited Been A Good Investment?
Given the total loss of 25% over three years, many shareholders in Sinofert Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Sinofert Holdings 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.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sinofert Holdings.
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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