Here's Why 361 Degrees International Limited's (HKG:1361) CEO May Deserve A Raise

Key Insights

• 361 Degrees International will host its Annual General Meeting on 25th of April
• CEO Wuhao Ding's total compensation includes salary of CN¥1.39m
• The overall pay is 57% below the industry average
• 361 Degrees International's total shareholder return over the past three years was 67% while its EPS grew by 32% over the past three years

The solid performance at 361 Degrees International Limited (HKG:1361) has been impressive and shareholders will probably be pleased to know that CEO Wuhao Ding has delivered. This would be kept in mind at the upcoming AGM on 25th of April which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for 361 Degrees International

How Does Total Compensation For Wuhao Ding Compare With Other Companies In The Industry?

According to our data, 361 Degrees International Limited has a market capitalization of HK$9.2b, and paid its CEO total annual compensation worth CN¥1.4m over the year to December 2023. That is, the compensation was roughly the same as last year. In particular, the salary of CN¥1.39m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations ranging between HK$3.1b and HK$13b had a median total CEO compensation of CN¥3.3m. This suggests that Wuhao Ding is paid below the industry median. What's more, Wuhao Ding holds HK$1.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.4m	CN¥1.4m	99%
Other	CN¥16k	CN¥16k	1%
Total Compensation	CN¥1.4m	CN¥1.4m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. 361 Degrees International has gone down a largely traditional route, paying Wuhao Ding a high salary, giving it preference over non-salary benefits. 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.

361 Degrees International Limited's Growth

361 Degrees International Limited's earnings per share (EPS) grew 32% per year over the last three years. It achieved revenue growth of 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has 361 Degrees International Limited Been A Good Investment?

We think that the total shareholder return of 67%, over three years, would leave most 361 Degrees International Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

361 Degrees International pays its CEO a majority of compensation through a salary. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for 361 Degrees International that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.