This Is Why Sling Group Holdings Limited's (HKG:8285) CEO Compensation Looks Appropriate

Key Insights

• Sling Group Holdings' Annual General Meeting to take place on 20th of June
• CEO Brian Lee's total compensation includes salary of CN¥517.0k
• Total compensation is 72% below industry average
• Sling Group Holdings' three-year loss to shareholders was 72% while its EPS was down 1.9% over the past three years

Performance at Sling Group Holdings Limited (HKG:8285) has been rather uninspiring recently and shareholders may be wondering how CEO Brian Lee plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 20th of June. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Sling Group Holdings

Comparing Sling Group Holdings Limited's CEO Compensation With The Industry

According to our data, Sling Group Holdings Limited has a market capitalization of HK$15m, and paid its CEO total annual compensation worth CN¥533k over the year to December 2023. That's a fairly small increase of 4.3% over the previous year. Notably, the salary which is CN¥517.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.9m. This suggests that Brian Lee is paid below the industry median. Moreover, Brian Lee also holds HK$3.5m worth of Sling Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	CN¥517k	CN¥496k	97%
Other	CN¥16k	CN¥15k	3%
Total Compensation	CN¥533k	CN¥511k	100%

Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Sling Group Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Sling Group Holdings Limited's Growth

Over the last three years, Sling Group Holdings Limited has shrunk its earnings per share by 1.9% per year. Its revenue is up 33% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sling Group Holdings Limited Been A Good Investment?

With a total shareholder return of -72% over three years, Sling Group Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Sling Group Holdings pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Sling Group Holdings (2 are concerning!) that you should be aware of before investing here.

Switching gears from Sling Group 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.