Is Singamas Container Holdings Limited (HKG:716) Excessively Paying Its CEO?

In 1997 Siong Teo was appointed CEO of Singamas Container Holdings Limited (HKG:716). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Singamas Container Holdings

How Does Siong Teo’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Singamas Container Holdings Limited has a market cap of HK$2.8b, and is paying total annual CEO compensation of US$2m. Notably, that’s an increase of 209% over the year before. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO compensation was US$292k.

Thus we can conclude that Siong Teo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Singamas Container Holdings Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Singamas Container Holdings, below.

SEHK:716 CEO Compensation October 12th 18
SEHK:716 CEO Compensation October 12th 18

Is Singamas Container Holdings Limited Growing?

Singamas Container Holdings Limited has increased its earnings per share (EPS) by an average of 38% a year, over the last three years Its revenue is up 68% over last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Singamas Container Holdings Limited Been A Good Investment?

Singamas Container Holdings Limited has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

We examined the amount Singamas Container 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. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Singamas Container Holdings Limited.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.