It's Unlikely That Shareholders Will Increase Styland Holdings Limited's (HKG:211) Compensation By Much This Year

By
Simply Wall St
Published
September 17, 2021
SEHK:211
Source: Shutterstock

The underwhelming performance at Styland Holdings Limited (HKG:211) recently has probably not pleased shareholders. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 24 September 2021. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Styland Holdings

Comparing Styland Holdings Limited's CEO Compensation With the industry

According to our data, Styland Holdings Limited has a market capitalization of HK$211m, and paid its CEO total annual compensation worth HK$636k over the year to March 2021. We note that's a small decrease of 7.6% on last year. Notably, the salary which is HK$618.0k, represents most of the total compensation being paid.

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$2.1m. That is to say, Hoo Win Cheung is paid under the industry median.

Component20212020Proportion (2021)
Salary HK$618k HK$618k 97%
Other HK$18k HK$70k 3%
Total CompensationHK$636k HK$688k100%

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Investors will find it interesting that Styland Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
SEHK:211 CEO Compensation September 17th 2021

A Look at Styland Holdings Limited's Growth Numbers

Over the last three years, Styland Holdings Limited has shrunk its earnings per share by 2.7% per year. Its revenue is up 5.9% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Styland Holdings Limited Been A Good Investment?

Few Styland Holdings Limited shareholders would feel satisfied with the return of -52% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Styland Holdings pays its CEO a majority of compensation through a salary. 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, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Styland Holdings (2 shouldn't be ignored!) that you should be aware of before investing here.

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.
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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.