Here's Why It's Unlikely That Sihuan Pharmaceutical Holdings Group Ltd.'s (HKG:460) CEO Will See A Pay Rise This Year

Key Insights

• Sihuan Pharmaceutical Holdings Group's Annual General Meeting to take place on 7th of June
• Total pay for CEO Weicheng Guo includes CN¥3.00m salary
• Total compensation is similar to the industry average
• Sihuan Pharmaceutical Holdings Group's EPS declined by 100% over the past three years while total shareholder loss over the past three years was 82%

The results at Sihuan Pharmaceutical Holdings Group Ltd. (HKG:460) have been quite disappointing recently and CEO Weicheng Guo bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 7th of June. 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 Sihuan Pharmaceutical Holdings Group

How Does Total Compensation For Weicheng Guo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sihuan Pharmaceutical Holdings Group Ltd. has a market capitalization of HK$5.0b, and reported total annual CEO compensation of CN¥3.0m for the year to December 2023. That's slightly lower by 4.8% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥3.0m.

In comparison with other companies in the Hong Kong Pharmaceuticals industry with market capitalizations ranging from HK$3.1b to HK$13b, the reported median CEO total compensation was CN¥3.0m. This suggests that Sihuan Pharmaceutical Holdings Group remunerates its CEO largely in line with the industry average. What's more, Weicheng Guo holds HK$6.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CN¥3.0m	CN¥3.2m	100%
Other	-	-	-
Total Compensation	CN¥3.0m	CN¥3.2m	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Speaking on a company level, Sihuan Pharmaceutical Holdings Group prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Sihuan Pharmaceutical Holdings Group Ltd.'s Growth Numbers

Over the last three years, Sihuan Pharmaceutical Holdings Group Ltd. has shrunk its earnings per share by 100% per year. Its revenue is down 15% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sihuan Pharmaceutical Holdings Group Ltd. Been A Good Investment?

Few Sihuan Pharmaceutical Holdings Group Ltd. shareholders would feel satisfied with the return of -82% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Sihuan Pharmaceutical Holdings Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sihuan Pharmaceutical Holdings Group (free visualization of insider trades).

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.

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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.