Jing Fu Liu became the CEO of China Sunsine Chemical Holdings Ltd. (SGX:CH8) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Jing Fu Liu’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that China Sunsine Chemical Holdings Ltd. has a market cap of S$523m, and is paying total annual CEO compensation of CN¥115k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥58k. We looked at a group of companies with market capitalizations from S$276m to S$1.1b, and the median CEO total compensation was S$49k.
It would therefore appear that China Sunsine Chemical Holdings Ltd. pays Jing Fu Liu 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at China Sunsine Chemical Holdings, below.
Is China Sunsine Chemical Holdings Ltd. Growing?
On average over the last three years, China Sunsine Chemical Holdings Ltd. has grown earnings per share (EPS) by 46% each year (using a line of best fit). It achieved revenue growth of 3.1% over the last year.
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.
Has China Sunsine Chemical Holdings Ltd. Been A Good Investment?
Most shareholders would probably be pleased with China Sunsine Chemical Holdings Ltd. for providing a total return of 204% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount China Sunsine Chemical Holdings Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying China Sunsine Chemical Holdings shares with their own money (free access).
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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