This article will reflect on the compensation paid to Chun Ning Yuen who has served as CEO of WWPKG Holdings Company Limited (HKG:8069) since 2016. This analysis will also assess whether WWPKG Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for WWPKG Holdings
How Does Total Compensation For Chun Ning Yuen Compare With Other Companies In The Industry?
At the time of writing, our data shows that WWPKG Holdings Company Limited has a market capitalization of HK$108m, and reported total annual CEO compensation of HK$996k for the year to March 2020. That's a slightly lower by 4.0% over the previous year. In particular, the salary of HK$978.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. That is to say, Chun Ning Yuen is paid under the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$978k | HK$1.0m | 98% |
| Other | HK$18k | HK$18k | 2% |
| Total Compensation | HK$996k | HK$1.0m | 100% |
Talking in terms of the industry, salary represented approximately 87% of total compensation out of all the companies we analyzed, while other remuneration made up 13% of the pie. WWPKG Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.
WWPKG Holdings Company Limited's Growth
Over the last three years, WWPKG Holdings Company Limited has shrunk its earnings per share by 52% per year. In the last year, its revenue is down 55%.
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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has WWPKG Holdings Company Limited Been A Good Investment?
Given the total shareholder loss of 68% over three years, many shareholders in WWPKG Holdings Company Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
Chun Ning receives almost all of their compensation through a salary. As we noted earlier, WWPKG Holdings pays its CEO lower than the norm for similar-sized companies belonging to the same industry. EPS growth has failed to impress us, and the same can be said about shareholder returns. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for WWPKG Holdings (1 makes us a bit uncomfortable!) 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. 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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About SEHK:8069
Flydoo Technology Holding
An investment holding company, operates as a travel agent in Hong Kong and Macau.
Excellent balance sheet and slightly overvalued.
