Is SITC International Holdings Company Limited's (HKG:1308) CEO Pay Fair?

In this article:

Xianxiang Yang became the CEO of SITC International Holdings Company Limited (HKG:1308) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for SITC International Holdings

How Does Xianxiang Yang's Compensation Compare With Similar Sized Companies?

Our data indicates that SITC International Holdings Company Limited is worth HK$21b, and total annual CEO compensation is US$1.6m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$573k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$538k.

It would therefore appear that SITC International Holdings Company Limited pays Xianxiang Yang more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at SITC International Holdings has changed from year to year.

SEHK:1308 CEO Compensation, July 26th 2019
SEHK:1308 CEO Compensation, July 26th 2019

Is SITC International Holdings Company Limited Growing?

Over the last three years SITC International Holdings Company Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). Its revenue is up 7.5% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has SITC International Holdings Company Limited Been A Good Investment?

Most shareholders would probably be pleased with SITC International Holdings Company Limited for providing a total return of 116% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We examined the amount SITC International Holdings Company Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SITC 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.

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