It Looks Like Wanjia Group Holdings Limited's (HKG:401) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Wanjia Group Holdings will host its Annual General Meeting on 13th of September
• Total pay for CEO Jia Jun Wang includes HK$1.84m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Wanjia Group Holdings' EPS fell by 8.0% and over the past three years, the total loss to shareholders 58%

Wanjia Group Holdings Limited (HKG:401) has not performed well recently and CEO Jia Jun Wang 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 13th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Wanjia Group Holdings

Comparing Wanjia Group Holdings Limited's CEO Compensation With The Industry

Our data indicates that Wanjia Group Holdings Limited has a market capitalization of HK$27m, and total annual CEO compensation was reported as HK$2.0m for the year to March 2024. Notably, that's an increase of 16% over the year before. In particular, the salary of HK$1.84m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Healthcare industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.6m. This suggests that Wanjia Group Holdings remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	HK$1.8m	HK$1.7m	93%
Other	HK$146k	HK$18k	7%
Total Compensation	HK$2.0m	HK$1.7m	100%

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Wanjia Group Holdings pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wanjia Group Holdings Limited's Growth Numbers

Wanjia Group Holdings Limited has reduced its earnings per share by 8.0% a year over the last three years. It achieved revenue growth of 4.3% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Wanjia Group Holdings Limited Been A Good Investment?

The return of -58% over three years would not have pleased Wanjia Group Holdings Limited shareholders. This suggests it would be unwise for the company to pay the CEO too 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Wanjia Group Holdings that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.