JLogo Holdings Limited's (HKG:8527) CEO Compensation Looks Acceptable To Us And Here's Why

The share price of JLogo Holdings Limited (HKG:8527) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 01 June 2021. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for JLogo Holdings

How Does Total Compensation For Kelly Tan Low Compare With Other Companies In The Industry?

Our data indicates that JLogo Holdings Limited has a market capitalization of HK$835m, and total annual CEO compensation was reported as S$249k for the year to December 2020. That is, the compensation was roughly the same as last year. Notably, the salary which is S$240.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of S$332k. This suggests that JLogo Holdings remunerates its CEO largely in line with the industry average. What's more, Kelly Tan Low holds HK$471m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	S$240k	S$216k	96%
Other	S$9.0k	S$26k	4%
Total Compensation	S$249k	S$242k	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. JLogo 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.

A Look at JLogo Holdings Limited's Growth Numbers

Over the last three years, JLogo Holdings Limited has shrunk its earnings per share by 5.7% per year. In the last year, its revenue is down 32%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. 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 JLogo Holdings Limited Been A Good Investment?

JLogo Holdings Limited has served shareholders reasonably well, with a total return of 27% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

JLogo Holdings pays its CEO a majority of compensation through a salary. Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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 2 warning signs for JLogo 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. 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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