We Think Shareholders May Want To Consider A Review Of Sisram Medical Ltd's (HKG:1696) CEO Compensation Package

Key Insights

• Sisram Medical will host its Annual General Meeting on 24th of June
• CEO Lior Dayan's total compensation includes salary of US$904.0k
• The overall pay is 285% above the industry average
• Over the past three years, Sisram Medical's EPS fell by 8.1% and over the past three years, the total loss to shareholders 64%

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Sisram Medical Ltd (HKG:1696) has not performed well recently and CEO Lior Dayan will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24th 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Sisram Medical

How Does Total Compensation For Lior Dayan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sisram Medical Ltd has a market capitalization of HK$2.1b, and reported total annual CEO compensation of US$1.3m for the year to December 2024. Notably, that's a decrease of 14% over the year before. In particular, the salary of US$904.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Hong Kong Medical Equipment industry with market capitalizations between HK$785m and HK$3.1b, we discovered that the median CEO total compensation of that group was US$342k. This suggests that Lior Dayan is paid more than the median for the industry. What's more, Lior Dayan holds HK$3.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Sisram Medical is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sisram Medical Ltd's Growth Numbers

Over the last three years, Sisram Medical Ltd has shrunk its earnings per share by 8.1% per year. Its revenue is down 2.8% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sisram Medical Ltd Been A Good Investment?

With a total shareholder return of -64% over three years, Sisram Medical Ltd shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Sisram Medical that investors should look into moving forward.

Important note: Sisram Medical is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.