Shareholders May Be More Conservative With Speedy Global Holdings Limited's (HKG:540) CEO Compensation For Now

Key Insights

• Speedy Global Holdings to hold its Annual General Meeting on 23rd of May
• Total pay for CEO Chih Shen Huang includes HK$4.18m salary
• The overall pay is 163% above the industry average
• Speedy Global Holdings' three-year loss to shareholders was 3.8% while its EPS grew by 91% over the past three years

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As many shareholders of Speedy Global Holdings Limited (HKG:540) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 23rd of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Speedy Global Holdings

How Does Total Compensation For Chih Shen Huang Compare With Other Companies In The Industry?

Our data indicates that Speedy Global Holdings Limited has a market capitalization of HK$105m, and total annual CEO compensation was reported as HK$5.7m for the year to December 2024. That's a notable increase of 67% on last year. Notably, the salary which is HK$4.18m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.2m. This suggests that Chih Shen Huang is paid more than the median for the industry. What's more, Chih Shen Huang holds HK$57m 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$4.2m	HK$3.4m	73%
Other	HK$1.5m	HK$18k	27%
Total Compensation	HK$5.7m	HK$3.4m	100%

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Speedy Global Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Speedy Global Holdings Limited's Growth Numbers

Over the past three years, Speedy Global Holdings Limited has seen its earnings per share (EPS) grow by 91% per year. Its revenue is up 43% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Speedy Global Holdings Limited Been A Good Investment?

Given the total shareholder loss of 3.8% over three years, many shareholders in Speedy Global Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders 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. That's why we did our research, and identified 2 warning signs for Speedy Global Holdings (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Speedy Global Holdings, 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.