Does SSY Group Limited's (HKG:2005) CEO Salary Reflect Performance?
The CEO of SSY Group Limited (HKG:2005) is Jiguang Qu. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for SSY Group
How Does Jiguang Qu's Compensation Compare With Similar Sized Companies?
According to our data, SSY Group Limited has a market capitalization of HK$20b, and paid its CEO total annual compensation worth HK$17m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$6.3m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$16b to HK$50b. The median total CEO compensation was HK$3.9m.
Thus we can conclude that Jiguang Qu receives more in total compensation than the median of a group of companies in the same market, and of similar size to SSY Group Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at SSY Group has changed from year to year.
Is SSY Group Limited Growing?
SSY Group Limited has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). It achieved revenue growth of 15% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has SSY Group Limited Been A Good Investment?
I think that the total shareholder return of 169%, over three years, would leave most SSY Group Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by SSY Group Limited, 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying SSY Group shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
