What Did China Sinostar Group Company Limited's (HKG:485) CEO Take Home Last Year?
Xing Qiao Wang has been the CEO of China Sinostar Group Company Limited (HKG:485) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for China Sinostar Group
How Does Xing Qiao Wang's Compensation Compare With Similar Sized Companies?
According to our data, China Sinostar Group Company Limited has a market capitalization of HK$136m, and paid its CEO total annual compensation worth HK$2.8m over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$2.8m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
It would therefore appear that China Sinostar Group Company Limited pays Xing Qiao Wang more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at China Sinostar Group has changed from year to year.
Is China Sinostar Group Company Limited Growing?
On average over the last three years, China Sinostar Group Company Limited has grown earnings per share (EPS) by 26% each year (using a line of best fit). It achieved revenue growth of 174% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 China Sinostar Group Company Limited Been A Good Investment?
Since shareholders would have lost about 78% over three years, some China Sinostar Group Company Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at China Sinostar Group Company Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shifting gears from CEO pay for a second, we've picked out 3 warning signs for China Sinostar Group that investors should be aware of in a dynamic business environment.
Important note: China Sinostar Group 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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. Thank you for reading.
