We Discuss Why Come Sure Group (Holdings) Limited's (HKG:794) CEO Compensation May Be Closely Reviewed

Key Insights

• Come Sure Group (Holdings) to hold its Annual General Meeting on 9th of September
• CEO Wa Pan Chong's total compensation includes salary of HK$2.46m
• Total compensation is 75% above industry average
• Come Sure Group (Holdings)'s three-year loss to shareholders was 67% while its EPS was down 52% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Come Sure Group (Holdings) Limited (HKG:794) recently. At the upcoming AGM on 9th of September, shareholders can hear from the board including their plans for turning around performance. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Come Sure Group (Holdings)

Comparing Come Sure Group (Holdings) Limited's CEO Compensation With The Industry

According to our data, Come Sure Group (Holdings) Limited has a market capitalization of HK$66m, and paid its CEO total annual compensation worth HK$2.5m over the year to March 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$2.46m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Packaging industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.4m. Accordingly, our analysis reveals that Come Sure Group (Holdings) Limited pays Wa Pan Chong north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$2.5m	HK$2.5m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$2.5m	HK$2.5m	100%

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Investors will find it interesting that Come Sure Group (Holdings) pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Come Sure Group (Holdings) Limited's Growth Numbers

Over the last three years, Come Sure Group (Holdings) Limited has shrunk its earnings per share by 52% per year. Its revenue is down 2.9% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Come Sure Group (Holdings) Limited Been A Good Investment?

The return of -67% over three years would not have pleased Come Sure Group (Holdings) Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Come Sure Group (Holdings) pays its CEO a majority of compensation through a salary. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 2 warning signs for Come Sure Group (Holdings) that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.