We Think Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s (HKG:1543) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Guangdong Join-Share Financing Guarantee Investment to hold its Annual General Meeting on 6th of June
• Total pay for CEO Liejin Wu includes CN¥484.0k salary
• Total compensation is 202% above industry average
• Guangdong Join-Share Financing Guarantee Investment's three-year loss to shareholders was 85% while its EPS was down 20% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Guangdong Join-Share Financing Guarantee Investment Co., Ltd. (HKG:1543) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 6th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Guangdong Join-Share Financing Guarantee Investment

How Does Total Compensation For Liejin Wu Compare With Other Companies In The Industry?

Our data indicates that Guangdong Join-Share Financing Guarantee Investment Co., Ltd. has a market capitalization of HK$421m, and total annual CEO compensation was reported as CN¥3.3m for the year to December 2024. We note that's a small decrease of 4.6% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥484k.

In comparison with other companies in the Hong Kong Consumer Finance industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.1m. Accordingly, our analysis reveals that Guangdong Join-Share Financing Guarantee Investment Co., Ltd. pays Liejin Wu north of the industry median. What's more, Liejin Wu holds HK$8.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. In Guangdong Join-Share Financing Guarantee Investment's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Guangdong Join-Share Financing Guarantee Investment Co., Ltd.'s Growth Numbers

Guangdong Join-Share Financing Guarantee Investment Co., Ltd. has reduced its earnings per share by 20% a year over the last three years. Its revenue is up 11% over the last year.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. 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 Guangdong Join-Share Financing Guarantee Investment Co., Ltd. Been A Good Investment?

Few Guangdong Join-Share Financing Guarantee Investment Co., Ltd. shareholders would feel satisfied with the return of -85% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Guangdong Join-Share Financing Guarantee Investment (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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.