Shareholders May Be More Conservative With Sitoy Group Holdings Limited's (HKG:1023) CEO Compensation For Now

Key Insights

• Sitoy Group Holdings to hold its Annual General Meeting on 18th of November
• Total pay for CEO Wo Fai Yeung includes HK$3.58m salary
• The total compensation is 133% higher than the average for the industry
• Over the past three years, Sitoy Group Holdings' EPS grew by 47% and over the past three years, the total shareholder return was 61%

CEO Wo Fai Yeung has done a decent job of delivering relatively good performance at Sitoy Group Holdings Limited (HKG:1023) recently. As shareholders go into the upcoming AGM on 18th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Sitoy Group Holdings

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

Our data indicates that Sitoy Group Holdings Limited has a market capitalization of HK$591m, and total annual CEO compensation was reported as HK$4.4m for the year to June 2024. That is, the compensation was roughly the same as last year. In particular, the salary of HK$3.58m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. This suggests that Wo Fai Yeung is paid more than the median for the industry. Furthermore, Wo Fai Yeung directly owns HK$146m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$3.6m	HK$3.6m	81%
Other	HK$851k	HK$862k	19%
Total Compensation	HK$4.4m	HK$4.4m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Sitoy Group Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Sitoy Group Holdings Limited's Growth

Sitoy Group Holdings Limited has seen its earnings per share (EPS) increase by 47% a year over the past three years. It saw its revenue drop 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Sitoy Group Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Sitoy Group Holdings Limited for providing a total return of 61% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Sitoy Group Holdings that investors should think about before committing capital to this stock.

Important note: Sitoy Group Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.