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Should You Worry About Sino-Life Group Limited's (HKG:8296) CEO Pay Cheque?

Tien-Tsai Liu is the CEO of Sino-Life Group Limited (HKG:8296). 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.

Check out our latest analysis for Sino-Life Group

How Does Tien-Tsai Liu's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Sino-Life Group Limited has a market cap of HK$113m, and reported total annual CEO compensation of CN¥2.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥772k. Importantly, there may be performance hurdles relating to the non-salary component of the total 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.

It would therefore appear that Sino-Life Group Limited pays Tien-Tsai Liu 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.

You can see, below, how CEO compensation at Sino-Life Group has changed over time.

SEHK:8296 CEO Compensation, February 19th 2020
SEHK:8296 CEO Compensation, February 19th 2020

Is Sino-Life Group Limited Growing?

On average over the last three years, Sino-Life Group Limited has grown earnings per share (EPS) by 41% each year (using a line of best fit). It achieved revenue growth of 3.0% over the last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sino-Life Group Limited Been A Good Investment?

Sino-Life Group Limited has not done too badly by shareholders, with a total return of 5.1%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by Sino-Life Group Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Sino-Life Group shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.