Shareholders May Be Wary Of Increasing Integrated Waste Solutions Group Holdings Limited's (HKG:923) CEO Compensation Package

Key Insights

• Integrated Waste Solutions Group Holdings' Annual General Meeting to take place on 28th of August
• Salary of HK$2.66m is part of CEO King Sang Lam's total remuneration
• The total compensation is 653% higher than the average for the industry
• Integrated Waste Solutions Group Holdings' three-year loss to shareholders was 73% while its EPS was down 32% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Integrated Waste Solutions Group Holdings Limited (HKG:923) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of August. 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 Integrated Waste Solutions Group Holdings

How Does Total Compensation For King Sang Lam Compare With Other Companies In The Industry?

Our data indicates that Integrated Waste Solutions Group Holdings Limited has a market capitalization of HK$82m, and total annual CEO compensation was reported as HK$4.1m for the year to March 2024. That's a notable increase of 21% on last year. Notably, the salary which is HK$2.66m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Forestry industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$546k. Hence, we can conclude that King Sang Lam is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$2.7m	HK$2.5m	65%
Other	HK$1.5m	HK$900k	35%
Total Compensation	HK$4.1m	HK$3.4m	100%

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. There isn't a significant difference between Integrated Waste Solutions Group Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Integrated Waste Solutions Group Holdings Limited's Growth Numbers

Over the last three years, Integrated Waste Solutions Group Holdings Limited has shrunk its earnings per share by 32% per year. In the last year, its revenue changed by just 0.9%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. 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 Integrated Waste Solutions Group Holdings Limited Been A Good Investment?

Few Integrated Waste Solutions Group Holdings Limited shareholders would feel satisfied with the return of -73% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business 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 2 warning signs for Integrated Waste Solutions Group Holdings that investors should look into moving forward.

Switching gears from Integrated Waste Solutions Group Holdings, 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.