Is SITC International Holdings Company Limited’s (HKG:1308) CEO Pay Fair?

In this article:

Xianxiang Yang became the CEO of SITC International Holdings Company Limited (HKG:1308) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for SITC International Holdings

How Does Xianxiang Yang’s Compensation Compare With Similar Sized Companies?

Our data indicates that SITC International Holdings Company Limited is worth HK$18b, and total annual CEO compensation is US$943k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$540k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$436k.

Thus we can conclude that Xianxiang Yang receives more in total compensation than the median of a group of companies in the same market, and of similar size to SITC International Holdings Company 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 SITC International Holdings, below.

SEHK:1308 CEO Compensation December 10th 18
SEHK:1308 CEO Compensation December 10th 18

Is SITC International Holdings Company Limited Growing?

SITC International Holdings Company Limited has increased its earnings per share (EPS) by an average of 12% a year, over the last three years It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has SITC International Holdings Company Limited Been A Good Investment?

I think that the total shareholder return of 113%, over three years, would leave most SITC International Holdings Company Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

We compared the total CEO remuneration paid by SITC International Holdings Company 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SITC International Holdings (free visualization of insider trades).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 editorial-team@simplywallst.com.

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