Shareholders May Not Be So Generous With KOS International Holdings Limited's (HKG:8042) CEO Compensation And Here's Why

Key Insights

• KOS International Holdings' Annual General Meeting to take place on 16th of May
• Salary of HK$1.56m is part of CEO Louisa Yeung's total remuneration
• The total compensation is similar to the average for the industry
• KOS International Holdings' three-year loss to shareholders was 29% while its EPS was down 104% over the past three years

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Shareholders of KOS International Holdings Limited (HKG:8042) will have been dismayed by the negative share price return over the last three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 16th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for KOS International Holdings

How Does Total Compensation For Louisa Yeung Compare With Other Companies In The Industry?

Our data indicates that KOS International Holdings Limited has a market capitalization of HK$34m, and total annual CEO compensation was reported as HK$1.7m for the year to December 2024. That's a modest increase of 3.1% on the prior year. In particular, the salary of HK$1.56m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. So it looks like KOS International Holdings compensates Louisa Yeung in line with the median for the industry.

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Although there is a difference in how total compensation is set, KOS International Holdings more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at KOS International Holdings Limited's Growth Numbers

Over the last three years, KOS International Holdings Limited has shrunk its earnings per share by 104% per year. In the last year, its revenue is up 49%.

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 KOS International Holdings Limited Been A Good Investment?

Since shareholders would have lost about 29% over three years, some KOS International Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for KOS International Holdings that investors should look into moving forward.

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.