How Does Sun Hing Vision Group Holdings' (HKG:125) CEO Salary Compare to Peers?
The CEO of Sun Hing Vision Group Holdings Limited (HKG:125) is Otis Ku, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Sun Hing Vision Group Holdings
How Does Total Compensation For Otis Ku Compare With Other Companies In The Industry?
Our data indicates that Sun Hing Vision Group Holdings Limited has a market capitalization of HK$357m, and total annual CEO compensation was reported as HK$753k for the year to March 2020. Notably, that's a decrease of 27% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$207k.
In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.4m. In other words, Sun Hing Vision Group Holdings pays its CEO lower than the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$207k | HK$208k | 27% |
| Other | HK$546k | HK$825k | 73% |
| Total Compensation | HK$753k | HK$1.0m | 100% |
On an industry level, around 93% of total compensation represents salary and 7.2% is other remuneration. Sun Hing Vision Group Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied 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. In the last year, its revenue is down 33%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this 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 51% for the shareholders, Sun Hing Vision Group Holdings Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
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 pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Sun Hing Vision Group Holdings you should be aware of, and 1 of them is a bit concerning.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
When trading Sun Hing Vision Group Holdings or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About SEHK:125
Sun Hing Vision Group Holdings
An investment holding company, manufactures and trades in eyewear products in Hong Kong, Macau, the People’s Republic of China, Japan, Italy, the United States, and internationally.
Fair value with mediocre balance sheet.
