We Think Shareholders May Consider Being More Generous With 361 Degrees International Limited's (HKG:1361) CEO Compensation Package

Key Insights

• 361 Degrees International will host its Annual General Meeting on 25th of April
• Salary of CN¥1.36m is part of CEO Wuhao Ding's total remuneration
• Total compensation is 58% below industry average
• Over the past three years, 361 Degrees International's EPS grew by 24% and over the past three years, the total shareholder return was 13%

Our free stock report includes 2 warning signs investors should be aware of before investing in 361 Degrees International. Read for free now.

Shareholders will probably not be disappointed by the robust results at 361 Degrees International Limited (HKG:1361) recently and they will be keeping this in mind as they go into the AGM on 25th of April. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View our latest analysis for 361 Degrees International

Comparing 361 Degrees International Limited's CEO Compensation With The Industry

At the time of writing, our data shows that 361 Degrees International Limited has a market capitalization of HK$8.7b, and reported total annual CEO compensation of CN¥1.4m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥1.36m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations ranging from HK$3.1b to HK$12b, the reported median CEO total compensation was CN¥3.3m. This suggests that Wuhao Ding is paid below the industry median. Furthermore, Wuhao Ding directly owns HK$1.5b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥1.4m	CN¥1.4m	99%
Other	CN¥17k	CN¥16k	1%
Total Compensation	CN¥1.4m	CN¥1.4m	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. 361 Degrees International pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

A Look at 361 Degrees International Limited's Growth Numbers

361 Degrees International Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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?

With a total shareholder return of 13% over three years, 361 Degrees International Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Wuhao receives almost all of their compensation through a salary. The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for 361 Degrees International you should be aware of, and 1 of them makes us a bit uncomfortable.

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.