IWS Group Holdings Limited's (HKG:6663) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• IWS Group Holdings' Annual General Meeting to take place on 13th of September
• Total pay for CEO Andy Choi includes HK$1.25m salary
• The overall pay is 106% above the industry average
• Over the past three years, IWS Group Holdings' EPS fell by 41% and over the past three years, the total loss to shareholders 58%

The results at IWS Group Holdings Limited (HKG:6663) have been quite disappointing recently and CEO Andy Choi bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 13th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for IWS Group Holdings

Comparing IWS Group Holdings Limited's CEO Compensation With The Industry

According to our data, IWS Group Holdings Limited has a market capitalization of HK$195m, and paid its CEO total annual compensation worth HK$3.8m over the year to March 2024. That's a notable decrease of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$1.3m.

On comparing similar-sized companies in the Hong Kong Commercial Services industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. Accordingly, our analysis reveals that IWS Group Holdings Limited pays Andy Choi north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$1.3m	HK$1.2m	33%
Other	HK$2.6m	HK$3.2m	67%
Total Compensation	HK$3.8m	HK$4.4m	100%

Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. It's interesting to note that IWS Group Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

IWS Group Holdings Limited's Growth

IWS Group Holdings Limited has reduced its earnings per share by 41% a year over the last three years. It achieved revenue growth of 2.4% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 IWS Group Holdings Limited Been A Good Investment?

Few IWS Group Holdings Limited shareholders would feel satisfied with the return of -58% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for IWS Group Holdings you should be aware of, and 2 of them are potentially serious.

Switching gears from IWS Group Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.