We Discuss Why Wanka Online Inc.'s (HKG:1762) CEO May Deserve A Higher Pay Packet

Key Insights

• Wanka Online's Annual General Meeting to take place on 26th of June
• Salary of CN¥1.40m is part of CEO Yu Jiang's total remuneration
• The total compensation is 72% less than the average for the industry
• Wanka Online's EPS declined by 69% over the past three years while total shareholder return over the past three years was 113%

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The decent performance at Wanka Online Inc. (HKG:1762) recently will please most shareholders as they go into the AGM coming up on 26th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Wanka Online

Comparing Wanka Online Inc.'s CEO Compensation With The Industry

According to our data, Wanka Online Inc. has a market capitalization of HK$1.4b, and paid its CEO total annual compensation worth CN¥1.6m over the year to December 2024. That's a notable increase of 8.4% on last year. We note that the salary portion, which stands at CN¥1.40m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Hong Kong Interactive Media and Services industry with market capitalizations between HK$785m and HK$3.1b, we discovered that the median CEO total compensation of that group was CN¥5.5m. In other words, Wanka Online pays its CEO lower than the industry median.

On an industry level, roughly 32% of total compensation represents salary and 68% is other remuneration. It's interesting to note that Wanka Online pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wanka Online Inc.'s Growth Numbers

Over the last three years, Wanka Online Inc. has shrunk its earnings per share by 69% per year. In the last year, its revenue is up 25%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Wanka Online Inc. Been A Good Investment?

Most shareholders would probably be pleased with Wanka Online Inc. for providing a total return of 113% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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. We did our research and identified 4 warning signs (and 1 which doesn't sit too well with us) in Wanka Online we think you should know about.

Switching gears from Wanka Online, 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.