Increases to CEO Compensation Might Be Put On Hold For Now at Wah Sun Handbags International Holdings Limited (HKG:2683)

Key Insights

• Wah Sun Handbags International Holdings to hold its Annual General Meeting on 2nd of September
• Salary of HK$2.72m is part of CEO Hing Ming Ma's total remuneration
• The total compensation is 56% higher than the average for the industry
• Over the past three years, Wah Sun Handbags International Holdings' EPS grew by 72% and over the past three years, the total shareholder return was 91%

Performance at Wah Sun Handbags International Holdings Limited (HKG:2683) has been reasonably good and CEO Hing Ming Ma has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 2nd of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Wah Sun Handbags International Holdings

How Does Total Compensation For Hing Ming Ma Compare With Other Companies In The Industry?

Our data indicates that Wah Sun Handbags International Holdings Limited has a market capitalization of HK$163m, and total annual CEO compensation was reported as HK$3.0m for the year to March 2024. That's slightly lower by 6.7% over the previous year. We note that the salary portion, which stands at HK$2.72m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. Hence, we can conclude that Hing Ming Ma is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$2.7m	HK$2.7m	92%
Other	HK$245k	HK$458k	8%
Total Compensation	HK$3.0m	HK$3.2m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. There isn't a significant difference between Wah Sun Handbags International Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Wah Sun Handbags International Holdings Limited's Growth

Wah Sun Handbags International Holdings Limited has seen its earnings per share (EPS) increase by 72% a year over the past three years. It achieved revenue growth of 33% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Wah Sun Handbags International Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 91% over three years, Wah Sun Handbags International Holdings Limited has done well by shareholders. 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Wah Sun Handbags International Holdings we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.