What Can We Make Of Icicle Group Holdings' (HKG:8429) CEO Compensation?

This article will reflect on the compensation paid to Bonnie Chan Woo who has served as CEO of Icicle Group Holdings Limited (HKG:8429) since 2017. This analysis will also assess whether Icicle Group Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Icicle Group Holdings

How Does Total Compensation For Bonnie Chan Woo Compare With Other Companies In The Industry?

According to our data, Icicle Group Holdings Limited has a market capitalization of HK$134m, and paid its CEO total annual compensation worth HK$1.1m over the year to December 2019. That's a slightly lower by 5.8% over the previous year. In particular, the salary of HK$1.13m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.5m. So it looks like Icicle Group Holdings compensates Bonnie Chan Woo in line with the median for the industry. What's more, Bonnie Chan Woo holds HK$75m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Investors will find it interesting that Icicle Group Holdings pays the bulk of its rewards through a traditional salary, instead of 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.

Icicle Group Holdings Limited's Growth

Icicle Group Holdings Limited has reduced its earnings per share by 66% a year over the last three years. Its revenue is down 35% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Icicle Group Holdings Limited Been A Good Investment?

With a three year total loss of 53% for the shareholders, Icicle Group Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Icicle Group Holdings pays its CEO a majority of compensation through a salary. As we noted earlier, Icicle Group Holdings pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Icicle Group Holdings you should be aware of, and 1 of them shouldn't be ignored.

Switching gears from Icicle 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. 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.
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