Embry Holdings Limited's (HKG:1388) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
- Embry Holdings to hold its Annual General Meeting on 29th of May
- CEO Liza Cheng's total compensation includes salary of HK$2.92m
- Total compensation is 35% above industry average
- Embry Holdings' EPS declined by 79% over the past three years while total shareholder loss over the past three years was 49%
Embry Holdings Limited (HKG:1388) has not performed well recently and CEO Liza Cheng will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for Embry Holdings
Comparing Embry Holdings Limited's CEO Compensation With The Industry
Our data indicates that Embry Holdings Limited has a market capitalization of HK$180m, and total annual CEO compensation was reported as HK$2.9m for the year to December 2024. We note that's a small decrease of 4.8% on last year. We note that the salary portion, which stands at HK$2.92m constitutes the majority of total compensation received by 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$2.2m. Hence, we can conclude that Liza Cheng is remunerated higher than the industry median. What's more, Liza Cheng holds HK$38m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$2.9m | HK$2.9m | 99% |
| Other | HK$18k | HK$147k | 1% |
| Total Compensation | HK$2.9m | HK$3.1m | 100% |
Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. Embry Holdings has gone down a largely traditional route, paying Liza Cheng a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Embry Holdings Limited's Growth
Over the last three years, Embry Holdings Limited has shrunk its earnings per share by 79% per year. It saw its revenue drop 10% 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Embry Holdings Limited Been A Good Investment?
The return of -49% over three years would not have pleased Embry Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Liza receives almost all of their compensation through a salary. 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
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 Embry Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.
Important note: Embry 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.