Shareholders May Not Be So Generous With Sa Sa International Holdings Limited's (HKG:178) CEO Compensation And Here's Why

Key Insights

• Sa Sa International Holdings will host its Annual General Meeting on 21st of August
• CEO Simon Kwok's total compensation includes salary of HK$3.00m
• Total compensation is similar to the industry average
• Sa Sa International Holdings' EPS grew by 85% over the past three years while total shareholder loss over the past three years was 50%

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Shareholders of Sa Sa International Holdings Limited (HKG:178) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 21st of August. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Sa Sa International Holdings

Comparing Sa Sa International Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Sa Sa International Holdings Limited has a market capitalization of HK$1.9b, and reported total annual CEO compensation of HK$3.3m for the year to March 2025. We note that's a small decrease of 3.5% on last year. Notably, the salary which is HK$3.00m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Specialty Retail industry with market capitalizations ranging from HK$784m to HK$3.1b, the reported median CEO total compensation was HK$4.3m. This suggests that Sa Sa International Holdings remunerates its CEO largely in line with the industry average. Moreover, Simon Kwok also holds HK$929m worth of Sa Sa International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Our data reveals that Sa Sa International Holdings allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Sa Sa International Holdings Limited's Growth Numbers

Sa Sa International Holdings Limited's earnings per share (EPS) grew 85% per year over the last three years. It saw its revenue drop 9.7% over the last year.

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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Sa Sa International Holdings Limited Been A Good Investment?

With a total shareholder return of -50% over three years, Sa Sa International Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Sa Sa International Holdings that you should be aware of before investing.

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.