Loco Hong Kong Holdings Limited's (HKG:8162) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Loco Hong Kong Holdings will host its Annual General Meeting on 27th of June
• Total pay for CEO Wendong Wang includes HK$1.80m salary
• The total compensation is similar to the average for the industry
• Loco Hong Kong Holdings' total shareholder return over the past three years was 122% while its EPS grew by 114% over the past three years

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We have been pretty impressed with the performance at Loco Hong Kong Holdings Limited (HKG:8162) recently and CEO Wendong Wang deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 27th of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Loco Hong Kong Holdings

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

According to our data, Loco Hong Kong Holdings Limited has a market capitalization of HK$528m, and paid its CEO total annual compensation worth HK$2.0m over the year to December 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at HK$1.80m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Trade Distributors industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. So it looks like Loco Hong Kong Holdings compensates Wendong Wang in line with the median for the industry.

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Our data reveals that Loco Hong Kong Holdings allocates salary more or less in line with the wider market. 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 Loco Hong Kong Holdings Limited's Growth Numbers

Over the past three years, Loco Hong Kong Holdings Limited has seen its earnings per share (EPS) grow by 114% per year. Its revenue is up 41% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Loco Hong Kong Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Loco Hong Kong Holdings Limited for providing a total return of 122% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 3 warning signs for Loco Hong Kong Holdings (of which 1 shouldn't be ignored!) 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.