Does Sun Hing Vision Group Holdings' (HKG:125) CEO Salary Compare Well With The Performance Of The Company?

Otis Ku is the CEO of Sun Hing Vision Group Holdings Limited (HKG:125), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Sun Hing Vision Group Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Sun Hing Vision Group Holdings

How Does Total Compensation For Otis Ku Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sun Hing Vision Group Holdings Limited has a market capitalization of HK$355m, and reported total annual CEO compensation of HK$753k for the year to March 2020. Notably, that's a decrease of 27% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$207k.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.5m. Accordingly, Sun Hing Vision Group Holdings pays its CEO under the industry median.

On an industry level, around 93% of total compensation represents salary and 7.4% is other remuneration. Sun Hing Vision Group Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Sun Hing Vision Group Holdings Limited's Growth

Over the last three years, Sun Hing Vision Group Holdings Limited has shrunk its earnings per share by 104% per year. Its revenue is down 33% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Sun Hing Vision Group Holdings Limited Been A Good Investment?

With a three year total loss of 52% for the shareholders, Sun Hing Vision Group Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Sun Hing Vision Group Holdings Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Sun Hing Vision Group Holdings we think you should know about.

Switching gears from Sun Hing Vision Group Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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