We Discuss Why Goal Forward Holdings Limited's (HKG:1854) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

The disappointing performance at Goal Forward Holdings Limited (HKG:1854) will make some shareholders rather disheartened. At the upcoming AGM on 16 September 2021, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for Goal Forward Holdings

Comparing Goal Forward Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Goal Forward Holdings Limited has a market capitalization of HK$228m, and reported total annual CEO compensation of HK$882k for the year to March 2021. There was no change in the compensation compared to last year. In particular, the salary of HK$600.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.3m. That is to say, Shuk Kwan Wu is paid under the industry median.

Component	2021	2020	Proportion (2021)
Salary	HK$600k	HK$600k	68%
Other	HK$282k	HK$282k	32%
Total Compensation	HK$882k	HK$882k	100%

Talking in terms of the industry, salary represented approximately 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. Goal Forward Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Goal Forward Holdings Limited's Growth Numbers

Goal Forward Holdings Limited has reduced its earnings per share by 104% a year over the last three years. It saw its revenue drop 31% over the last year.

Overall this is not a very positive result for shareholders. 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. 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 Goal Forward Holdings Limited Been A Good Investment?

The return of -35% over three years would not have pleased Goal Forward Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Goal Forward Holdings (1 is potentially serious!) that you should be aware of before investing here.

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.
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