In This Article:
Mengde Wang became the CEO of Sunac China Holdings Limited (HKG:1918) in 2015. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Sunac China Holdings
How Does Mengde Wang's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sunac China Holdings Limited has a market cap of HK$147b, and is paying total annual CEO compensation of CN¥21m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CN¥7.1m. We looked at a group of companies with market capitalizations over CN¥57b and the median CEO total compensation was CN¥5.6m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
It would therefore appear that Sunac China Holdings Limited pays Mengde Wang more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Sunac China Holdings, below.
Is Sunac China Holdings Limited Growing?
On average over the last three years, Sunac China Holdings Limited has grown earnings per share (EPS) by 61% each year (using a line of best fit). It achieved revenue growth of 59% over the 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sunac China Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 558% over three years, Sunac China Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Sunac China Holdings Limited with the amount paid at other large companies. As discussed above, we discovered that the company pays more than the median of that group.