Seng Huang Lee has been the CEO of Sun Hung Kai & Co. Limited (HKG:86) since 2007. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Sun Hung Kai

How Does Seng Huang Lee's Compensation Compare With Similar Sized Companies?

Our data indicates that Sun Hung Kai & Co. Limited is worth HK$7.4b, and total annual CEO compensation was reported as HK$47m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$9.2m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from HK$3.1b to HK$12b, and discovered that the median CEO total compensation of that group was HK$3.4m.

Thus we can conclude that Seng Huang Lee receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sun Hung Kai & Co. 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, below, how CEO compensation at Sun Hung Kai has changed over time.

Is Sun Hung Kai & Co. Limited Growing?

On average over the last three years, Sun Hung Kai & Co. Limited has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is down 1.3% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.

Has Sun Hung Kai & Co. Limited Been A Good Investment?

Given the total loss of 11% over three years, many shareholders in Sun Hung Kai & Co. Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Sun Hung Kai & Co. Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Sun Hung Kai insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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