We Think Theme International Holdings Limited's (HKG:990) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Theme International Holdings' Annual General Meeting to take place on 30th of June
• CEO Jiang Jiang's total compensation includes salary of HK$1.44m
• The overall pay is 200% above the industry average
• Over the past three years, Theme International Holdings' EPS fell by 34% and over the past three years, the total loss to shareholders 42%

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Shareholders will probably not be too impressed with the underwhelming results at Theme International Holdings Limited (HKG:990) recently. At the upcoming AGM on 30th of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Theme International Holdings

Comparing Theme International Holdings Limited's CEO Compensation With The Industry

According to our data, Theme International Holdings Limited has a market capitalization of HK$8.2b, and paid its CEO total annual compensation worth HK$3.4m over the year to December 2024. We note that's a small decrease of 6.0% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.4m.

On examining similar-sized companies in the Hong Kong Trade Distributors industry with market capitalizations between HK$3.1b and HK$13b, we discovered that the median CEO total compensation of that group was HK$1.1m. This suggests that Jiang Jiang is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8% of the pie. In Theme International Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Theme International Holdings Limited's Growth

Over the last three years, Theme International Holdings Limited has shrunk its earnings per share by 34% per year. It saw its revenue drop 26% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Theme International Holdings Limited Been A Good Investment?

Few Theme International Holdings Limited shareholders would feel satisfied with the return of -42% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Theme International Holdings that investors should think about before committing capital to this stock.

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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.