Robert Ng is the CEO of Sino Land Company Limited (HKG:83), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Sino Land
How Does Total Compensation For Robert Ng Compare With Other Companies In The Industry?
Our data indicates that Sino Land Company Limited has a market capitalization of HK$84b, and total annual CEO compensation was reported as HK$921k for the year to June 2020. Notably, that's a decrease of 27% over the year before. Notably, the salary of HK$921k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations over HK$62b , the reported median total CEO compensation was HK$22m. Accordingly, Sino Land pays its CEO under the industry median. Furthermore, Robert Ng directly owns HK$2.3b worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$921k | HK$1.2m | 100% |
| Other | - | HK$40k | - |
| Total Compensation | HK$921k | HK$1.3m | 100% |
Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Speaking on a company level, Sino Land prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Sino Land Company Limited's Growth
Over the last three years, Sino Land Company Limited has shrunk its earnings per share by 41% per year. In the last year, its revenue is down 26%.
The decline in EPS is a bit concerning. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Sino Land Company Limited Been A Good Investment?
With a total shareholder return of 1.4% over three years, Sino Land Company Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Sino Land rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Sino Land Company Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Shareholder returns have been uninspiring, but EPS growth has arguably been worse, over the last three years. So, although we can't say CEO compensation is very high, shareholders might want to see an improvement in overall performance before agreeing that Robert deserves a bump.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 4 warning signs for Sino Land that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
When trading Sino Land 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:83
Sino Land
An investment holding company, invests in, develops, manages, and trades in properties.
Flawless balance sheet and fair value.
