It Looks Like IntelliCentrics Global Holdings Ltd.'s (HKG:6819) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• IntelliCentrics Global Holdings to hold its Annual General Meeting on 15th of December
• CEO Mike Sheehan's total compensation includes salary of US$808.0k
• The total compensation is 160% higher than the average for the industry
• IntelliCentrics Global Holdings' three-year loss to shareholders was 39% while its EPS was down 52% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at IntelliCentrics Global Holdings Ltd. (HKG:6819) recently. At the upcoming AGM on 15th of December, shareholders can hear from the board including their plans for turning around performance. 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.

View our latest analysis for IntelliCentrics Global Holdings

Comparing IntelliCentrics Global Holdings Ltd.'s CEO Compensation With The Industry

According to our data, IntelliCentrics Global Holdings Ltd. has a market capitalization of HK$1.8b, and paid its CEO total annual compensation worth US$1.7m over the year to June 2023. We note that's an increase of 75% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$808k.

On comparing similar companies from the Hong Kong Healthcare Services industry with market caps ranging from HK$781m to HK$3.1b, we found that the median CEO total compensation was US$663k. Accordingly, our analysis reveals that IntelliCentrics Global Holdings Ltd. pays Mike Sheehan north of the industry median. Furthermore, Mike Sheehan directly owns HK$156m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$808k	US$500k	47%
Other	US$917k	US$486k	53%
Total Compensation	US$1.7m	US$986k	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. IntelliCentrics Global Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at IntelliCentrics Global Holdings Ltd.'s Growth Numbers

IntelliCentrics Global Holdings Ltd. has reduced its earnings per share by 52% a year over the last three years. It achieved revenue growth of 8.1% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 IntelliCentrics Global Holdings Ltd. Been A Good Investment?

The return of -39% over three years would not have pleased IntelliCentrics Global Holdings Ltd. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 IntelliCentrics Global Holdings you should be aware of, and 1 of them doesn't sit too well with us.

Important note: IntelliCentrics Global Holdings 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.