Is Sa Sa International Holdings Limited’s (HKG:178) CEO Incentives Align With Yours?

In This Article:

In 1996 Simon Kwok was appointed CEO of Sa Sa International Holdings Limited (HKG:178). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Sa Sa International Holdings

How Does Simon Kwok’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Sa Sa International Holdings Limited has a market cap of HK$9.4b, and is paying total annual CEO compensation of HK$3m. That’s actually a decrease on the year before. When we examined a selection of companies with market caps ranging from HK$3.1b to HK$12.5b, we found the median CEO compensation was HK$2m.

As you can see, Simon Kwok is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Sa Sa International 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, below, how CEO compensation at Sa Sa International Holdings has changed over time.

SEHK:178 CEO Compensation October 27th 18
SEHK:178 CEO Compensation October 27th 18

Is Sa Sa International Holdings Limited Growing?

Sa Sa International Holdings Limited has reduced its earnings per share by an average of 33% a year, over the last three years. It achieved revenue growth of 6.2% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

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

Has Sa Sa International Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Sa Sa International Holdings Limited for providing a total return of 39% over three years. 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 total CEO remuneration at Sa Sa International Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.