How Much Does 361 Degrees International's (HKG:1361) CEO Make?

This article will reflect on the compensation paid to Wuhao Ding who has served as CEO of 361 Degrees International Limited (HKG:1361) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for 361 Degrees International

Comparing 361 Degrees International Limited's CEO Compensation With the industry

According to our data, 361 Degrees International Limited has a market capitalization of HK$1.9b, and paid its CEO total annual compensation worth CN¥1.4m over the year to December 2019. Notably, that's an increase of 11% over the year before. We note that the salary portion, which stands at CN¥1.34m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between HK$775m and HK$3.1b had a median total CEO compensation of CN¥2.6m. Accordingly, 361 Degrees International pays its CEO under the industry median. What's more, Wuhao Ding holds HK$320m 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 93% of total compensation represents salary and 7.4% is other remuneration. Investors will find it interesting that 361 Degrees International pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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 361 Degrees International Limited's Growth Numbers

Over the last three years, 361 Degrees International Limited has shrunk its earnings per share by 6.4% per year. It saw its revenue drop 6.1% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has 361 Degrees International Limited Been A Good Investment?

With a three year total loss of 62% for the shareholders, 361 Degrees International Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Wuhao receives almost all of their compensation through a salary. As we touched on above, 361 Degrees International Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. It's tough to say that Wuhao is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

So you may want to check if insiders are buying 361 Degrees International shares with their own money (free access).

Switching gears from 361 Degrees International, 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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