We Discuss Why The CEO Of Winning Tower Group Holdings Limited (HKG:8362) Is Due For A Pay Rise

Key Insights

• Winning Tower Group Holdings will host its Annual General Meeting on 8th of May
• Total pay for CEO Eldon Lai includes HK$711.0k salary
• The total compensation is 34% less than the average for the industry
• Winning Tower Group Holdings' EPS grew by 93% over the past three years while total shareholder return over the past three years was 54%

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Shareholders will be pleased by the impressive results for Winning Tower Group Holdings Limited (HKG:8362) recently and CEO Eldon Lai has played a key role. At the upcoming AGM on 8th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Winning Tower Group Holdings

How Does Total Compensation For Eldon Lai Compare With Other Companies In The Industry?

Our data indicates that Winning Tower Group Holdings Limited has a market capitalization of HK$84m, and total annual CEO compensation was reported as HK$729k for the year to December 2024. That's a notable decrease of 49% on last year. In particular, the salary of HK$711.0k, makes up a huge portion of the total compensation being paid to 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 HK$1.1m. In other words, Winning Tower Group Holdings pays its CEO lower than the industry median. Furthermore, Eldon Lai directly owns HK$840k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$711k	HK$1.4m	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$729k	HK$1.4m	100%

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Winning Tower 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 is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Winning Tower Group Holdings Limited's Growth

Winning Tower Group Holdings Limited has seen its earnings per share (EPS) increase by 93% a year over the past three years. In the last year, its revenue changed by just 0.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Winning Tower Group Holdings Limited Been A Good Investment?

We think that the total shareholder return of 54%, over three years, would leave most Winning Tower Group Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Winning Tower Group Holdings pays its CEO a majority of compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Winning Tower Group Holdings that investors should think about before committing capital to this stock.

Switching gears from Winning Tower 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.