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Is China Saite Group Company Limited's (HKG:153) CEO Overpaid Relative To Its Peers?

The CEO of China Saite Group Company Limited (HKG:153) is Xiaoqiang Shao. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for China Saite Group

How Does Xiaoqiang Shao's Compensation Compare With Similar Sized Companies?

According to our data, China Saite Group Company Limited has a market capitalization of HK$402m, and paid its CEO total annual compensation worth CN¥945k over the year to December 2018. Notably, the salary of CN¥930k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.6m.

Most shareholders would consider it a positive that Xiaoqiang Shao takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

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

SEHK:153 CEO Compensation, February 26th 2020
SEHK:153 CEO Compensation, February 26th 2020

Is China Saite Group Company Limited Growing?

Over the last three years China Saite Group Company Limited has shrunk its earnings per share by an average of 35% per year (measured with a line of best fit). In the last year, its revenue is up 1.7%.

Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has China Saite Group Company Limited Been A Good Investment?

Since shareholders would have lost about 76% over three years, some China Saite Group Company Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like China Saite Group Company Limited pays its CEO less than similar sized companies.

Shareholders should note that compensation for Xiaoqiang Shao is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. So you may want to check if insiders are buying China Saite Group shares with their own money (free access).

If you want to buy a stock that is better than China Saite Group, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.