Should You Worry About Sun International Group Limited’s (HKG:8029) CEO Pay Cheque?

Man Lui has been the CEO of Sun International Group Limited (HKG:8029) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.

See our latest analysis for Sun International Group

How Does Man Lui’s Compensation Compare With Similar Sized Companies?

According to our data, Sun International Group Limited has a market capitalization of HK$452m, and pays its CEO total annual compensation worth HK$1.4m. (This figure is for the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$1.4m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.5m.

So Man Lui receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Sun International Group has changed over time.

SEHK:8029 CEO Compensation, April 3rd 2019
SEHK:8029 CEO Compensation, April 3rd 2019

Is Sun International Group Limited Growing?

On average over the last three years, Sun International Group Limited has grown earnings per share (EPS) by 43% each year (using a line of best fit). It achieved revenue growth of 50% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sun International Group Limited Been A Good Investment?

Since shareholders would have lost about 69% over three years, some Sun International Group Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Remuneration for Man Lui is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. So you may want to check if insiders are buying Sun International Group 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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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.