Here's Why Some Shareholders May Not Be Too Generous With Jia Group Holdings Limited's (HKG:8519) CEO Compensation This Year

Performance at Jia Group Holdings Limited (HKG:8519) has not been particularly rosy recently and shareholders will likely be holding CEO Pui Yain Wong and the board accountable for this. The next AGM coming up on 24 May 2021 will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

Check out our latest analysis for Jia Group Holdings

Comparing Jia Group Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Jia Group Holdings Limited has a market capitalization of HK$154m, and reported total annual CEO compensation of HK$707k for the year to December 2020. That's a notable decrease of 24% on last year. We note that the salary portion, which stands at HK$690.0k constitutes the majority of total compensation received by 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$2.0m. That is to say, Pui Yain Wong is paid under the industry median. Moreover, Pui Yain Wong also holds HK$75m worth of Jia Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	HK$690k	HK$859k	98%
Other	HK$17k	HK$75k	2%
Total Compensation	HK$707k	HK$934k	100%

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. Investors will find it interesting that Jia Group Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Jia Group Holdings Limited's Growth Numbers

Over the last three years, Jia Group Holdings Limited has shrunk its earnings per share by 34% per year. In the last year, its revenue is down 18%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last 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 Jia Group Holdings Limited Been A Good Investment?

With a three year total loss of 15% for the shareholders, Jia Group Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Jia Group Holdings pays its CEO a majority of compensation through a salary. 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.

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. In our study, we found 3 warning signs for Jia Group Holdings you should be aware of, and 1 of them is potentially serious.

Switching gears from Jia 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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