Shareholders Will Probably Hold Off On Increasing NOIZ Group Limited's (HKG:8163) CEO Compensation For The Time Being

Key Insights

• NOIZ Group will host its Annual General Meeting on 22nd of May
• Total pay for CEO Hans Wong includes HK$1.95m salary
• Total compensation is 55% above industry average
• NOIZ Group's three-year loss to shareholders was 48% while its EPS grew by 19% over the past three years

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Shareholders of NOIZ Group Limited (HKG:8163) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 22nd of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for NOIZ Group

Comparing NOIZ Group Limited's CEO Compensation With The Industry

According to our data, NOIZ Group Limited has a market capitalization of HK$66m, and paid its CEO total annual compensation worth HK$2.0m over the year to December 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$1.95m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Diversified Financial industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. This suggests that Hans Wong is paid more than the median for the industry. Furthermore, Hans Wong directly owns HK$19m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$2.0m	HK$2.0m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$2.0m	HK$2.0m	100%

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. NOIZ Group has gone down a largely traditional route, paying Hans Wong a high salary, giving it preference over 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.

NOIZ Group Limited's Growth

NOIZ Group Limited's earnings per share (EPS) grew 19% per year over the last three years. Its revenue is up 22% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 NOIZ Group Limited Been A Good Investment?

Few NOIZ Group Limited shareholders would feel satisfied with the return of -48% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Hans receives almost all of their compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might 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. In our study, we found 3 warning signs for NOIZ Group you should be aware of, and 2 of them are significant.

Switching gears from NOIZ Group, 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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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.