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Sai Chit Shum has been the CEO of Century Sunshine Group Holdings Limited (HKG:509) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Sai Chit Shum’s Compensation Compare With Similar Sized Companies?
Our data indicates that Century Sunshine Group Holdings Limited is worth HK$1.1b, and total annual CEO compensation is HK$1.9m. (This number is for the twelve months until December 2018). That’s a notable increase of 92% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$1.1m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.
That means Sai Chit Shum receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Century Sunshine Group Holdings has changed from year to year.
Is Century Sunshine Group Holdings Limited Growing?
Century Sunshine Group Holdings Limited has increased its earnings per share (EPS) by an average of 8.0% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 35%.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Century Sunshine Group Holdings Limited Been A Good Investment?
Given the total loss of 37% over three years, many shareholders in Century Sunshine Group Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Sai Chit Shum is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And it’s hard to argue that the returns over the last three years have delighted. This doesn’t look great when you consider CEO remuneration is up on last year. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Century Sunshine Group Holdings.
Important note: Century Sunshine Group Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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.