The CEO of SiS Mobile Holdings Limited (HKG:1362) is Kiah Meng Lim. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kiah Meng Lim's Compensation Compare With Similar Sized Companies?
Our data indicates that SiS Mobile Holdings Limited is worth HK$314m, and total annual CEO compensation is HK$4.0m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at HK$1.2m. 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$1.9m.
Thus we can conclude that Kiah Meng Lim receives more in total compensation than the median of a group of companies in the same market, and of similar size to SiS Mobile Holdings Limited. However, this doesn't necessarily mean the pay 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.
You can see a visual representation of the CEO compensation at SiS Mobile Holdings, below.
Is SiS Mobile Holdings Limited Growing?
On average over the last three years, SiS Mobile Holdings Limited has grown earnings per share (EPS) by 102% each year (using a line of best fit). Its revenue is down -13% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has SiS Mobile Holdings Limited Been A Good Investment?
Since shareholders would have lost about 32% over three years, some SiS Mobile Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at SiS Mobile Holdings Limited with the amount paid at companies with a similar market capitalization. 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. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if SiS Mobile Holdings insiders are buying or selling shares.
Important note: SiS Mobile Holdings 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.
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