Is Synertone Communication Corporation’s (HKG:1613) CEO Paid Enough To Stay Motivated?

Weining Han became the CEO of Synertone Communication Corporation (HKG:1613) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Synertone Communication

How Does Weining Han’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Synertone Communication Corporation has a market cap of HK$490m, and is paying total annual CEO compensation of HK$2m. That’s actually a decrease on the year before. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO compensation to be HK$2m.

So Weining Han receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Synertone Communication, below.

SEHK:1613 CEO Compensation October 23rd 18
SEHK:1613 CEO Compensation October 23rd 18

Is Synertone Communication Corporation Growing?

On average over the last three years, Synertone Communication Corporation has shrunk earnings per share by 11% each year. Its revenue is down -35% over last year.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Synertone Communication Corporation Been A Good Investment?

With a three year total loss of 81%, Synertone Communication Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Weining Han is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don’t think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Synertone Communication Corporation.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.