Is Shimao Property Holdings Limited's (HKG:813) CEO Pay Fair?

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Wing Mau Hui is the CEO of Shimao Property Holdings Limited (HKG:813). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for Shimao Property Holdings

How Does Wing Mau Hui's Compensation Compare With Similar Sized Companies?

Our data indicates that Shimao Property Holdings Limited is worth HK$71b, and total annual CEO compensation is CN¥6.2m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥5.3m. When we examined a selection of companies with market caps ranging from CN¥28b to CN¥83b, we found the median CEO total compensation was CN¥3.6m.

As you can see, Wing Mau Hui is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Shimao Property 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 Shimao Property Holdings, below.

SEHK:813 CEO Compensation, June 2nd 2019
SEHK:813 CEO Compensation, June 2nd 2019

Is Shimao Property Holdings Limited Growing?

Shimao Property Holdings Limited has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). Its revenue is up 21% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Shimao Property Holdings Limited Been A Good Investment?

I think that the total shareholder return of 172%, over three years, would leave most Shimao Property Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Shimao Property 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.