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Is Sa Sa International Holdings Limited's (HKG:178) CEO Pay Fair?

In 1996 Simon Kwok was appointed CEO of Sa Sa International Holdings Limited (HKG:178). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for Sa Sa International Holdings

How Does Simon Kwok's Compensation Compare With Similar Sized Companies?

According to our data, Sa Sa International Holdings Limited has a market capitalization of HK$3.6b, and paid its CEO total annual compensation worth HK$3.1m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.9m. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.2b, we found the median CEO total compensation was HK$2.6m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Sa Sa International Holdings stands. Speaking on an industry level, we can see that nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. Our data reveals that Sa Sa International Holdings allocates salary in line with the wider market.

So Simon Kwok receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Sa Sa International Holdings has changed over time.

SEHK:178 CEO Compensation April 2nd 2020
SEHK:178 CEO Compensation April 2nd 2020

Is Sa Sa International Holdings Limited Growing?

Sa Sa International Holdings Limited has seen earnings per share (EPS) move positively by an average of 3.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 10%.

I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Sa Sa International Holdings Limited Been A Good Investment?

With a three year total loss of 58%, Sa Sa International Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Simon Kwok is close enough to the median pay for a CEO of a similar sized company .

We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. Moving away from CEO compensation for the moment, we've identified 2 warning signs for Sa Sa International Holdings that you should be aware of before investing.

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.

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