We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Win Hanverky Holdings Limited's (HKG:3322) CEO For Now

Key Insights

• Win Hanverky Holdings will host its Annual General Meeting on 24th of June
• CEO Alan Lee's total compensation includes salary of HK$3.36m
• Total compensation is 55% above industry average
• Over the past three years, Win Hanverky Holdings' EPS fell by 48% and over the past three years, the total loss to shareholders 21%

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In the past three years, the share price of Win Hanverky Holdings Limited (HKG:3322) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 24th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Win Hanverky Holdings

How Does Total Compensation For Alan Lee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Win Hanverky Holdings Limited has a market capitalization of HK$306m, and reported total annual CEO compensation of HK$3.4m for the year to December 2024. That is, the compensation was roughly the same as last year. In particular, the salary of HK$3.36m, makes up a huge portion of the total compensation being paid to 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. This suggests that Alan Lee is paid more than the median for the industry.

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. Investors will find it interesting that Win Hanverky Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Win Hanverky Holdings Limited's Growth

Win Hanverky Holdings Limited has reduced its earnings per share by 48% a year over the last three years. In the last year, its revenue is up 29%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Win Hanverky Holdings Limited Been A Good Investment?

Since shareholders would have lost about 21% over three years, some Win Hanverky Holdings Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Win Hanverky Holdings pays its CEO a majority of compensation through a salary. The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with 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. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Win Hanverky 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.

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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.