In 2012 Stanley Sun was appointed CEO of China-Hongkong Photo Products Holdings Limited (HKG:1123). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stanley Sun's Compensation Compare With Similar Sized Companies?
According to our data, China-Hongkong Photo Products Holdings Limited has a market capitalization of HK$235m, and paid its CEO total annual compensation worth HK$2.6m over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.9m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
Thus we can conclude that Stanley Sun receives more in total compensation than the median of a group of companies in the same market, and of similar size to China-Hongkong Photo Products Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at China-Hongkong Photo Products Holdings has changed from year to year.
Is China-Hongkong Photo Products Holdings Limited Growing?
On average over the last three years, China-Hongkong Photo Products Holdings Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue changed by just 0.4%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has China-Hongkong Photo Products Holdings Limited Been A Good Investment?
Given the total loss of 57% over three years, many shareholders in China-Hongkong Photo Products Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at China-Hongkong Photo Products Holdings Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. 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 China-Hongkong Photo Products Holdings.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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