Should You Worry About China SCE Group Holdings Limited's (HKG:1966) CEO Salary Level?
The CEO of China SCE Group Holdings Limited (HKG:1966) is Chiu Wong. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for China SCE Group Holdings
How Does Chiu Wong's Compensation Compare With Similar Sized Companies?
According to our data, China SCE Group Holdings Limited has a market capitalization of HK$16b, and paid its CEO total annual compensation worth CN¥3.9m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥1.6m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from CN¥7.0b to CN¥23b, and the median CEO total compensation was CN¥4.0m.
So Chiu Wong is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at China SCE Group Holdings has changed over time.
Is China SCE Group Holdings Limited Growing?
Over the last three years China SCE Group Holdings Limited has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). It achieved revenue growth of 8.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has China SCE Group Holdings Limited Been A Good Investment?
I think that the total shareholder return of 85%, over three years, would leave most China SCE Group Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Chiu Wong is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling China SCE Group Holdings (free visualization of insider trades).
If you want to buy a stock that is better than China SCE Group Holdings, this free list of high return, low debt companies is a great place to look.
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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