We Discuss Why Shineroad International Holdings Limited's (HKG:1587) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Shineroad International Holdings will host its Annual General Meeting on 16th of May
• CEO Xin Rong Huang's total compensation includes salary of CN¥660.0k
• Total compensation is 32% below industry average
• Shineroad International Holdings' three-year loss to shareholders was 6.4% while its EPS was down 20% over the past three years

Our free stock report includes 3 warning signs investors should be aware of before investing in Shineroad International Holdings. Read for free now.

The disappointing performance at Shineroad International Holdings Limited (HKG:1587) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 16th of May. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Shineroad International Holdings

How Does Total Compensation For Xin Rong Huang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Shineroad International Holdings Limited has a market capitalization of HK$360m, and reported total annual CEO compensation of CN¥693k for the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CN¥660.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Consumer Retailing industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.0m. In other words, Shineroad International Holdings pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥660k	CN¥652k	95%
Other	CN¥33k	CN¥33k	5%
Total Compensation	CN¥693k	CN¥685k	100%

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. Investors will find it interesting that Shineroad International Holdings pays the bulk of its rewards through a traditional salary, instead of 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.

A Look at Shineroad International Holdings Limited's Growth Numbers

Shineroad International Holdings Limited has reduced its earnings per share by 20% a year over the last three years. Its revenue is down 3.2% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shineroad International Holdings Limited Been A Good Investment?

Given the total shareholder loss of 6.4% over three years, many shareholders in Shineroad International Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Xin Rong receives almost all of their compensation through a salary. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Shineroad International Holdings (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.