Most Shareholders Will Probably Find That The Compensation For Wisdomcome Group Holdings Limited's (HKG:8079) CEO Is Reasonable

Key Insights

• Wisdomcome Group Holdings' Annual General Meeting to take place on 6th of September
• Total pay for CEO Clara Siu includes HK$741.0k salary
• The overall pay is 72% below the industry average
• Over the past three years, Wisdomcome Group Holdings' EPS grew by 36% and over the past three years, the total loss to shareholders 85%

Shareholders may be wondering what CEO Clara Siu plans to do to improve the less than great performance at Wisdomcome Group Holdings Limited (HKG:8079) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 6th of September. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Wisdomcome Group Holdings

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

Our data indicates that Wisdomcome Group Holdings Limited has a market capitalization of HK$13m, and total annual CEO compensation was reported as HK$759k for the year to March 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$741.0k, represents most of the total compensation being paid.

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 HK$2.7m. This suggests that Clara Siu is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$741k	HK$723k	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$759k	HK$741k	100%

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. Wisdomcome Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 Wisdomcome Group Holdings Limited's Growth Numbers

Over the past three years, Wisdomcome Group Holdings Limited has seen its earnings per share (EPS) grow by 36% per year. In the last year, its revenue is down 25%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Wisdomcome Group Holdings Limited Been A Good Investment?

The return of -85% over three years would not have pleased Wisdomcome Group Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Wisdomcome Group Holdings pays its CEO a majority of compensation through a salary. The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Wisdomcome Group Holdings you should be aware of, and 3 of them are a bit concerning.

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.