It Looks Like Stream Ideas Group Limited's (HKG:8401) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Stream Ideas Group's Annual General Meeting to take place on 14th of September
• Salary of HK$1.17m is part of CEO Jenny Cheung's total remuneration
• The total compensation is similar to the average for the industry
• Stream Ideas Group's EPS declined by 28% over the past three years while total shareholder loss over the past three years was 95%

Shareholders will probably not be too impressed with the underwhelming results at Stream Ideas Group Limited (HKG:8401) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 14th 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.

Check out our latest analysis for Stream Ideas Group

Comparing Stream Ideas Group Limited's CEO Compensation With The Industry

According to our data, Stream Ideas Group Limited has a market capitalization of HK$21m, and paid its CEO total annual compensation worth HK$1.4m over the year to March 2023. We note that's a decrease of 18% compared to last year. We note that the salary portion, which stands at HK$1.17m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Media industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.6m. From this we gather that Jenny Cheung is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	HK$1.2m	HK$1.2m	85%
Other	HK$198k	HK$498k	15%
Total Compensation	HK$1.4m	HK$1.7m	100%

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Although there is a difference in how total compensation is set, Stream Ideas Group more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Stream Ideas Group Limited's Growth Numbers

Over the last three years, Stream Ideas Group Limited has shrunk its earnings per share by 28% per year. Its revenue is down 21% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. 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 Stream Ideas Group Limited Been A Good Investment?

The return of -95% over three years would not have pleased Stream Ideas Group Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

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 pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Stream Ideas Group (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the 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.