In This Article:
In 2007 Dong Cai was appointed CEO of Sinotruk (Hong Kong) Limited (HKG:3808). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
View our latest analysis for Sinotruk (Hong Kong)
How Does Dong Cai’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sinotruk (Hong Kong) Limited has a market cap of HK$35b, and is paying total annual CEO compensation of CN¥785k. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥652k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥14b to CN¥44b. The median total CEO compensation was CN¥3.4m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Sinotruk (Hong Kong) has changed over time.
Is Sinotruk (Hong Kong) Limited Growing?
Sinotruk (Hong Kong) Limited has increased its earnings per share (EPS) by an average of 96% a year, over the last three years In the last year, its revenue is up 41%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Sinotruk (Hong Kong) Limited Been A Good Investment?
I think that the total shareholder return of 331%, over three years, would leave most Sinotruk (Hong Kong) Limited shareholders smiling. 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…
It looks like Sinotruk (Hong Kong) Limited pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Dong Cai deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Sinotruk (Hong Kong) insiders are buying or selling shares.