In 2015 Jianbao Chen was appointed CEO of Sino Energy International Holdings Group Limited (HKG:1096). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Jianbao Chen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sino Energy International Holdings Group Limited has a market cap of HK$129m, and reported total annual CEO compensation of CN¥844k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at . Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.5m.
Most shareholders would consider it a positive that Jianbao Chen takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Sino Energy International Holdings Group has changed from year to year.
Is Sino Energy International Holdings Group Limited Growing?
On average over the last three years, Sino Energy International Holdings Group Limited has grown earnings per share (EPS) by 1.9% each year (using a line of best fit). In the last year, its revenue is down 35%.
I would prefer it if there was revenue growth, but it is good to see EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Sino Energy International Holdings Group Limited Been A Good Investment?
Given the total loss of 83% over three years, many shareholders in Sino Energy International Holdings Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Sino Energy International Holdings Group Limited is currently paying its CEO below what is normal for companies of its size.
It's well worth noting that while Jianbao Chen is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Sino Energy International Holdings Group shares (free trial).
Important note: Sino Energy International Holdings Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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