Is SITC International Holdings Company Limited's (HKG:1308) CEO Paid At A Competitive Rate?

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In 2008 Xianxiang Yang was appointed CEO of SITC International Holdings Company Limited (HKG:1308). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for SITC International Holdings

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

At the time of writing, our data says that SITC International Holdings Company Limited has a market cap of HK$26b, and reported total annual CEO compensation of US$1.6m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$573k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$575k.

Thus we can conclude that Xianxiang Yang receives more in total compensation than the median of a group of companies in the same market, and of similar size to SITC International Holdings Company Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at SITC International Holdings has changed over time.

SEHK:1308 CEO Compensation, February 9th 2020
SEHK:1308 CEO Compensation, February 9th 2020

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 18% per year (using a line of best fit). It achieved revenue growth of 7.7% over the 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. You might want to check this free visual report on analyst forecasts for future earnings.

Has SITC International Holdings Company Limited Been A Good Investment?

Boasting a total shareholder return of 131% over three years, SITC International Holdings Company Limited has done well by shareholders. 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.