Key Insights

• China Sinostar Group will host its Annual General Meeting on 20th of September
• Total pay for CEO Xing Qiao Wang includes HK$444.0k salary
• The overall pay is 80% below the industry average
• China Sinostar Group's EPS declined by 20% over the past three years while total shareholder loss over the past three years was 44%

Shareholders may be wondering what CEO Xing Qiao Wang plans to do to improve the less than great performance at China Sinostar Group Company Limited (HKG:485) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 20th of September. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

How Does Total Compensation For Xing Qiao Wang Compare With Other Companies In The Industry?

According to our data, China Sinostar Group Company Limited has a market capitalization of HK$28m, and paid its CEO total annual compensation worth HK$457k over the year to March 2024. We note that's an increase of 35% above last year. Notably, the salary which is HK$444.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Consumer Durables industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.3m. In other words, China Sinostar Group pays its CEO lower than the industry median.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. China Sinostar Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at China Sinostar Group Company Limited's Growth Numbers

Over the last three years, China Sinostar Group Company Limited has shrunk its earnings per share by 20% per year. It achieved revenue growth of 34% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has China Sinostar Group Company Limited Been A Good Investment?

The return of -44% over three years would not have pleased China Sinostar Group Company Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Xing Qiao receives almost all of their compensation through a salary. The fact that shareholders have earned a negative share price return is certainly disconcerting. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for China Sinostar Group (of which 3 are concerning!) that you should know about in order to have a holistic understanding of the stock.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.