Yahoo Finance Is Sino-Global Shipping America, Ltd.'s (NASDAQ:SINO) CEO Paid Enough Relative To Peers?
In 2001 Lei Cao was appointed CEO of Sino-Global Shipping America, Ltd. (NASDAQ:SINO). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Sino-Global Shipping America
How Does Lei Cao's Compensation Compare With Similar Sized Companies?
According to our data, Sino-Global Shipping America, Ltd. has a market capitalization of US$12m, and paid its CEO total annual compensation worth US$488k over the year to June 2019. That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$180k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$510k.
So Lei Cao is paid around the average of 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 Sino-Global Shipping America has changed over time.
Is Sino-Global Shipping America, Ltd. Growing?
Over the last three years Sino-Global Shipping America, Ltd. has shrunk its earnings per share by an average of 51% per year (measured with a line of best fit). Its revenue is up 81% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Sino-Global Shipping America, Ltd. Been A Good Investment?
With a three year total loss of 89%, Sino-Global Shipping America, Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Lei Cao is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sino-Global Shipping America.
Important note: Sino-Global Shipping America may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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. Thank you for reading.
