We Think Shareholders Are Less Likely To Approve A Large Pay Rise For SV Vision Limited's (HKG:8429) CEO For Now

Key Insights

• SV Vision's Annual General Meeting to take place on 18th of June
• Salary of HK$2.12m is part of CEO Bonnie Chan Woo's total remuneration
• Total compensation is 43% above industry average
• Over the past three years, SV Vision's EPS grew by 6.9% and over the past three years, the total loss to shareholders 67%

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In the past three years, the share price of SV Vision Limited (HKG:8429) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 18th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for SV Vision

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

Our data indicates that SV Vision Limited has a market capitalization of HK$17m, and total annual CEO compensation was reported as HK$2.1m for the year to December 2024. That's a notable decrease of 12% on last year. We note that the salary portion, which stands at HK$2.12m 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$1.5m. Accordingly, our analysis reveals that SV Vision Limited pays Bonnie Chan Woo north of the industry median. What's more, Bonnie Chan Woo holds HK$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. SV Vision pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at SV Vision Limited's Growth Numbers

SV Vision Limited's earnings per share (EPS) grew 6.9% per year over the last three years. Its revenue is up 70% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 SV Vision Limited Been A Good Investment?

The return of -67% over three years would not have pleased SV Vision Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Bonnie receives almost all of their compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 4 warning signs for SV Vision that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.