In This Article:
In 2015 Mengde Wang was appointed CEO of Sunac China Holdings Limited (HKG:1918). First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for Sunac China Holdings
How Does Mengde Wang’s Compensation Compare With Similar Sized Companies?
According to our data, Sunac China Holdings Limited has a market capitalization of HK$113b, and pays its CEO total annual compensation worth CN¥13m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥5.5m. We took a group of companies with market capitalizations over CN¥55b, and calculated the median CEO compensation to be CN¥4.8m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
As you can see, Mengde Wang is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Sunac China Holdings Limited is paying too much. 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?
Over the last three years Sunac China Holdings Limited has grown its earnings per share (EPS) by an average of 57% per year. In the last year, its revenue is up 147%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
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 430% over three years, Sunac China Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We examined the amount Sunac China Holdings Limited pays its CEO, and compared it to the amount paid by other large companies. Our data suggests that it pays above the median CEO pay within that group.