In 2015 Kin Sung was appointed CEO of China Silver Group Limited (HKG:815). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for China Silver Group

How Does Kin Sung’s Compensation Compare With Similar Sized Companies?

Our data indicates that China Silver Group Limited is worth HK$1.3b, and total annual CEO compensation is CN¥2.6m. (This figure is for the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥2.6m. We looked at a group of companies with market capitalizations from CN¥689m to CN¥2.8b, and the median CEO compensation was CN¥1.9m.

As you can see, Kin Sung is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean China Silver Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at China Silver Group has changed over time.

Is China Silver Group Limited Growing?

Over the last three years China Silver Group Limited has grown its earnings per share (EPS) by an average of 38% per year. Its revenue is down -20% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.

We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has China Silver Group Limited Been A Good Investment?

With a three year total loss of 61%, China Silver Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We examined the amount China Silver Group 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling China Silver Group shares (free trial).

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.