In This Article:
Ming Li has been the CEO of Sino-Ocean Group Holding Limited (HKG:3377) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Sino-Ocean Group Holding
How Does Ming Li's Compensation Compare With Similar Sized Companies?
According to our data, Sino-Ocean Group Holding Limited has a market capitalization of HK$21b, and paid its CEO total annual compensation worth CN¥15m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥5.8m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from CN¥14b to CN¥45b, and discovered that the median CEO total compensation of that group was CN¥3.5m.
Thus we can conclude that Ming Li receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sino-Ocean Group Holding Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Sino-Ocean Group Holding, below.
Is Sino-Ocean Group Holding Limited Growing?
Over the last three years Sino-Ocean Group Holding Limited has grown its earnings per share (EPS) by an average of 6.8% per year (using a line of best fit). Its revenue is down 3.3% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sino-Ocean Group Holding Limited Been A Good Investment?
With a total shareholder return of 5.0% over three years, Sino-Ocean Group Holding Limited has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at Sino-Ocean Group Holding Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.