It Looks Like SV Vision Limited's (HKG:8429) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• SV Vision to hold its Annual General Meeting on 12th of June
• Salary of HK$2.40m is part of CEO Bonnie Chan Woo's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, SV Vision's EPS fell by 25% and over the past three years, the total loss to shareholders 83%

The results at SV Vision Limited (HKG:8429) have been quite disappointing recently and CEO Bonnie Chan Woo 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 12th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for SV Vision

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

According to our data, SV Vision Limited has a market capitalization of HK$18m, and paid its CEO total annual compensation worth HK$2.4m over the year to December 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at HK$2.40m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Commercial Services industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. From this we gather that Bonnie Chan Woo is paid around the median for CEOs in the industry. Moreover, Bonnie Chan Woo also holds HK$12m worth of SV Vision stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	HK$2.4m	HK$2.4m	99%
Other	HK$18k	HK$12k	1%
Total Compensation	HK$2.4m	HK$2.4m	100%

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. SV Vision pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

SV Vision Limited's Growth

Over the last three years, SV Vision Limited has shrunk its earnings per share by 25% per year. In the last year, its revenue is down 9.9%.

Overall this is not a very positive result for shareholders. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SV Vision Limited Been A Good Investment?

The return of -83% over three years would not have pleased SV Vision Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

SV Vision pays its CEO a majority of compensation through a salary. 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, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for SV Vision that investors should be aware of in a dynamic business environment.

Switching gears from SV Vision, 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.