Shareholders Will Likely Find Qinqin Foodstuffs Group (Cayman) Company Limited's (HKG:1583) CEO Compensation Acceptable

Key Insights

• Qinqin Foodstuffs Group (Cayman) to hold its Annual General Meeting on 16th of May
• Total pay for CEO Wenxu Wu includes CN¥700.0k salary
• The overall pay is 41% below the industry average
• Qinqin Foodstuffs Group (Cayman)'s EPS grew by 121% over the past three years while total shareholder loss over the past three years was 38%

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Performance at Qinqin Foodstuffs Group (Cayman) Company Limited (HKG:1583) has been rather uninspiring recently and shareholders may be wondering how CEO Wenxu Wu plans to fix this. At the next AGM coming up on 16th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Qinqin Foodstuffs Group (Cayman)

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

According to our data, Qinqin Foodstuffs Group (Cayman) Company Limited has a market capitalization of HK$846m, and paid its CEO total annual compensation worth CN¥947k over the year to December 2024. Notably, that's an increase of 22% over the year before. Notably, the salary which is CN¥700.0k, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.6m. That is to say, Wenxu Wu is paid under the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥700k	CN¥572k	74%
Other	CN¥247k	CN¥205k	26%
Total Compensation	CN¥947k	CN¥777k	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% 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 has seen its earnings per share (EPS) increase by 121% a year over the past three years. In the last year, its revenue is up 1.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 -38% over three years would not have pleased Qinqin Foodstuffs Group (Cayman) Company Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Qinqin Foodstuffs Group (Cayman) that investors should look into moving forward.

Switching gears from Qinqin Foodstuffs Group (Cayman), 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.