It May Be Possible That Stream Ideas Group Limited's (HKG:8401) CEO Compensation Could Get Bumped Up

The decent performance at Stream Ideas Group Limited (HKG:8401) recently will please most shareholders as they go into the AGM coming up on 09 September 2021. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Stream Ideas Group

How Does Total Compensation For Jenny Cheung Compare With Other Companies In The Industry?

Our data indicates that Stream Ideas Group Limited has a market capitalization of HK$226m, and total annual CEO compensation was reported as HK$1.7m for the year to March 2021. We note that's an increase of 11% above last year. Notably, the salary which is HK$1.17m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.5m. Accordingly, Stream Ideas Group pays its CEO under the industry median.

Component	2021	2020	Proportion (2021)
Salary	HK$1.2m	HK$1.1m	70%
Other	HK$498k	HK$398k	30%
Total Compensation	HK$1.7m	HK$1.5m	100%

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Stream Ideas Group pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Stream Ideas Group Limited's Growth

Over the past three years, Stream Ideas Group Limited has seen its earnings per share (EPS) grow by 43% per year. It saw its revenue drop 6.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?

Stream Ideas Group Limited has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for Stream Ideas Group that investors should look into moving forward.

Important note: Stream Ideas Group 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.
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