In This Article:
In 2017 Douglas Sung was appointed CEO of Shui On Land Limited (HKG:272). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Shui On Land
How Does Douglas Sung's Compensation Compare With Similar Sized Companies?
According to our data, Shui On Land Limited has a market capitalization of HK$13b, and pays its CEO total annual compensation worth CN¥14m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥5.8m. We looked at a group of companies with market capitalizations from CN¥7.1b to CN¥23b, and the median CEO total compensation was CN¥3.4m.
It would therefore appear that Shui On Land Limited pays Douglas Sung more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Shui On Land has changed from year to year.
Is Shui On Land Limited Growing?
On average over the last three years, Shui On Land Limited has grown earnings per share (EPS) by 42% each year (using a line of best fit). Its revenue is up 35% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Shui On Land Limited Been A Good Investment?
Since shareholders would have lost about 14% over three years, some Shui On Land Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Shui On Land Limited pays its CEO, and compared it to the amount paid by 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. 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Shui On Land (free visualization of insider trades).