Shareholders May Find It Hard To Justify Increasing Wing Lee Property Investments Limited's (HKG:864) CEO Compensation For Now

Key Insights

• Wing Lee Property Investments to hold its Annual General Meeting on 31st of May
• Salary of HK$139.0k is part of CEO Siu Wah Wong's total remuneration
• Total compensation is similar to the industry average
• Wing Lee Property Investments' EPS grew by 72% over the past three years while total shareholder loss over the past three years was 55%

The underwhelming share price performance of Wing Lee Property Investments Limited (HKG:864) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 31st of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Wing Lee Property Investments

How Does Total Compensation For Siu Wah Wong Compare With Other Companies In The Industry?

Our data indicates that Wing Lee Property Investments Limited has a market capitalization of HK$93m, and total annual CEO compensation was reported as HK$1.5m for the year to December 2023. That's a notable decrease of 24% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$139k.

On comparing similar-sized companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.8m. This suggests that Wing Lee Property Investments remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	HK$139k	HK$139k	9%
Other	HK$1.4m	HK$1.8m	91%
Total Compensation	HK$1.5m	HK$2.0m	100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Wing Lee Property Investments pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Wing Lee Property Investments Limited's Growth

Wing Lee Property Investments Limited's earnings per share (EPS) grew 72% per year over the last three years. In the last year, its revenue is down 5.3%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Wing Lee Property Investments Limited Been A Good Investment?

The return of -55% over three years would not have pleased Wing Lee Property Investments Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Wing Lee Property Investments that investors should think about before committing capital to this stock.

Switching gears from Wing Lee Property Investments, 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.