Is SiS International Holdings Limited’s (HKG:529) CEO Overpaid Relative To Its Peers?
The CEO of SiS International Holdings Limited (HKG:529) is Kia Hong Lim. 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. 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.
See our latest analysis for SiS International Holdings
How Does Kia Hong Lim’s Compensation Compare With Similar Sized Companies?
According to our data, SiS International Holdings Limited has a market capitalization of HK$1.1b, and pays its CEO total annual compensation worth HK$5.0m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$4.5m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$1.5m.
Thus we can conclude that Kia Hong Lim receives more in total compensation than the median of a group of companies in the same market, and of similar size to SiS International Holdings 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.
The graphic below shows how CEO compensation at SiS International Holdings has changed from year to year.
Is SiS International Holdings Limited Growing?
Over the last three years SiS International Holdings Limited has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). In the last year, its revenue is up 277%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has SiS International Holdings Limited Been A Good Investment?
With a total shareholder return of 5.0% over three years, SiS International Holdings 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 the total CEO remuneration paid by SiS International Holdings Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SiS International Holdings (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
