Sun Hing Vision Group Holdings Limited's (HKG:125) CEO Will Probably Struggle To See A Pay Rise This Year

Performance at Sun Hing Vision Group Holdings Limited (HKG:125) has not been particularly rosy recently and shareholders will likely be holding CEO Otis Ku and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 20 August 2021. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for Sun Hing Vision Group Holdings

Comparing Sun Hing Vision Group Holdings Limited's CEO Compensation With the industry

According to our data, Sun Hing Vision Group Holdings Limited has a market capitalization of HK$394m, and paid its CEO total annual compensation worth HK$400k over the year to March 2021. That's a notable decrease of 47% on last year. Notably, the salary which is HK$207.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.3m. Accordingly, Sun Hing Vision Group Holdings pays its CEO under the industry median.

Component	2021	2020	Proportion (2021)
Salary	HK$207k	HK$207k	52%
Other	HK$193k	HK$546k	48%
Total Compensation	HK$400k	HK$753k	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. Sun Hing Vision Group Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Sun Hing Vision Group Holdings Limited's Growth Numbers

Over the last three years, Sun Hing Vision Group Holdings Limited has shrunk its earnings per share by 47% per year. In the last year, its revenue is down 23%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Sun Hing Vision Group Holdings Limited Been A Good Investment?

Few Sun Hing Vision Group Holdings Limited shareholders would feel satisfied with the return of -38% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Sun Hing Vision Group Holdings (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Sun Hing Vision 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.
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