In 2001 Lei Cao was appointed CEO of Sino-Global Shipping America Ltd (NASDAQ:SINO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Lei Cao’s Compensation Compare With Similar Sized Companies?
Our data indicates that Sino-Global Shipping America Ltd is worth US$12m, and total annual CEO compensation is US$525k. Notably, that’s an increase of 192% over the year before. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$291k.
Thus we can conclude that Lei Cao receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sino-Global Shipping America Ltd. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Sino-Global Shipping America, below.
Is Sino-Global Shipping America Ltd Growing?
On average over the last three years, Sino-Global Shipping America Ltd has grown earnings per share (EPS) by 58% each year. It achieved revenue growth of 102% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Sino-Global Shipping America Ltd Been A Good Investment?
Sino-Global Shipping America Ltd has generated a total shareholder return of 5.9% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We the total CEO remuneration paid by Sino-Global Shipping America Ltd, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. So you may want to check if insiders are buying Sino-Global Shipping America Ltd shares with their own money (free access).
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 firstname.lastname@example.org.