Shareholders Will Likely Find S.F. Holding Co., Ltd.'s (SZSE:002352) CEO Compensation Acceptable

Key Insights

• S.F. Holding's Annual General Meeting to take place on 30th of April
• Salary of CN¥1.12m is part of CEO Dick Wang's total remuneration
• Total compensation is 98% below industry average
• S.F. Holding's EPS grew by 1.2% over the past three years while total shareholder loss over the past three years was 45%

The performance at S.F. Holding Co., Ltd. (SZSE:002352) has been rather lacklustre of late and shareholders may be wondering what CEO Dick Wang is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 30th of April. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for S.F. Holding

Comparing S.F. Holding Co., Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that S.F. Holding Co., Ltd. has a market capitalization of CN¥171b, and reported total annual CEO compensation of CN¥1.2m for the year to December 2023. Notably, that's an increase of 65% over the year before. In particular, the salary of CN¥1.12m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies in the Chinese Logistics industry with market capitalizations above CN¥58b, we found that the median total CEO compensation was CN¥54m. That is to say, Dick Wang is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.1m	CN¥702k	97%
Other	CN¥39k	-	3%
Total Compensation	CN¥1.2m	CN¥702k	100%

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. S.F. Holding is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

S.F. Holding Co., Ltd.'s Growth

S.F. Holding Co., Ltd.'s earnings per share (EPS) grew 1.2% per year over the last three years. Its revenue is down 3.4% over the previous year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has S.F. Holding Co., Ltd. Been A Good Investment?

With a total shareholder return of -45% over three years, S.F. Holding Co., Ltd. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

S.F. Holding pays its CEO a majority of compensation through a salary. The loss to shareholders over the past three years is certainly concerning. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for S.F. Holding that investors should be aware of in a dynamic business environment.

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.