A Quick Analysis On SiS Mobile Holdings' (HKG:1362) CEO Salary

Kiah Meng Lim is the CEO of SiS Mobile Holdings Limited (HKG:1362), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for SiS Mobile Holdings.

Check out our latest analysis for SiS Mobile Holdings

Comparing SiS Mobile Holdings Limited's CEO Compensation With the industry

Our data indicates that SiS Mobile Holdings Limited has a market capitalization of HK$109m, and total annual CEO compensation was reported as HK$1.3m for the year to December 2019. That's a slightly lower by 7.6% over the previous year. In particular, the salary of HK$1.20m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. This suggests that SiS Mobile Holdings remunerates its CEO largely in line with the industry average. Furthermore, Kiah Meng Lim directly owns HK$797k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. It's interesting to note that SiS Mobile Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

SiS Mobile Holdings Limited's Growth

Over the last three years, SiS Mobile Holdings Limited has shrunk its earnings per share by 124% per year. Its revenue is down 6.6% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. 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 SiS Mobile Holdings Limited Been A Good Investment?

Since shareholders would have lost about 76% over three years, some SiS Mobile Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, SiS Mobile Holdings Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for SiS Mobile Holdings that investors should think about before committing capital to this stock.

Switching gears from SiS Mobile 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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