Shareholders May Be Wary Of Increasing JS Global Lifestyle Company Limited's (HKG:1691) CEO Compensation Package

Key Insights

• JS Global Lifestyle's Annual General Meeting to take place on 22nd of May
• CEO CJ Xuning Wang's total compensation includes salary of US$1.12m
• Total compensation is 35,931% above industry average
• JS Global Lifestyle's EPS declined by 76% over the past three years while total shareholder loss over the past three years was 75%

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Shareholders will probably not be too impressed with the underwhelming results at JS Global Lifestyle Company Limited (HKG:1691) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 22nd of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for JS Global Lifestyle

How Does Total Compensation For CJ Xuning Wang Compare With Other Companies In The Industry?

At the time of writing, our data shows that JS Global Lifestyle Company Limited has a market capitalization of HK$6.8b, and reported total annual CEO compensation of US$67m for the year to December 2024. Notably, that's an increase of 68% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.

For comparison, other companies in the Hong Kong Consumer Durables industry with market capitalizations ranging between HK$3.1b and HK$12b had a median total CEO compensation of US$186k. Hence, we can conclude that CJ Xuning Wang is remunerated higher than the industry median. What's more, CJ Xuning Wang holds HK$3.7b 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 81% of total compensation represents salary and 19% is other remuneration. JS Global Lifestyle has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

JS Global Lifestyle Company Limited's Growth

Over the last three years, JS Global Lifestyle Company Limited has shrunk its earnings per share by 76% per year. It achieved revenue growth of 12% over the last year.

The decline in EPS is a bit concerning. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has JS Global Lifestyle Company Limited Been A Good Investment?

Few JS Global Lifestyle Company Limited shareholders would feel satisfied with the return of -75% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

JS Global Lifestyle prefers rewarding its CEO through non-salary benefits. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for JS Global Lifestyle that you should be aware of before investing.

Switching gears from JS Global Lifestyle, 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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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.