Most Shareholders Will Probably Find That The Compensation For Qinqin Foodstuffs Group (Cayman) Company Limited's (HKG:1583) CEO Is Reasonable

Key Insights

• Qinqin Foodstuffs Group (Cayman)'s Annual General Meeting to take place on 17th of May
• CEO Wenxu Wu's total compensation includes salary of CN¥572.0k
• The total compensation is 37% less than the average for the industry
• Qinqin Foodstuffs Group (Cayman)'s EPS grew by 42% over the past three years while total shareholder loss over the past three years was 63%

Shareholders may be wondering what CEO Wenxu Wu plans to do to improve the less than great performance at Qinqin Foodstuffs Group (Cayman) Company Limited (HKG:1583) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 17th of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Qinqin Foodstuffs Group (Cayman)

Comparing Qinqin Foodstuffs Group (Cayman) Company Limited's CEO Compensation With The Industry

Our data indicates that Qinqin Foodstuffs Group (Cayman) Company Limited has a market capitalization of HK$619m, and total annual CEO compensation was reported as CN¥777k for the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of CN¥572.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.2m. Accordingly, Qinqin Foodstuffs Group (Cayman) pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥572k	CN¥561k	74%
Other	CN¥205k	CN¥237k	26%
Total Compensation	CN¥777k	CN¥798k	100%

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Qinqin Foodstuffs Group (Cayman) is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Qinqin Foodstuffs Group (Cayman) Company Limited's Growth Numbers

Qinqin Foodstuffs Group (Cayman) Company Limited's earnings per share (EPS) grew 42% per year over the last three years. Its revenue is up 2.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Qinqin Foodstuffs Group (Cayman) Company Limited Been A Good Investment?

The return of -63% over three years would not have pleased Qinqin Foodstuffs Group (Cayman) Company Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Qinqin Foodstuffs Group (Cayman) we think you should know about.

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.