This Is Why Yoho Group Holdings Limited's (HKG:2347) CEO Compensation Looks Appropriate

Key Insights

• Yoho Group Holdings to hold its Annual General Meeting on 29th of August
• Salary of HK$832.0k is part of CEO Faat Chi Wu's total remuneration
• Total compensation is 30% below industry average
• Yoho Group Holdings' EPS grew by 37% over the past three years while total shareholder loss over the past three years was 39%

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The performance at Yoho Group Holdings Limited (HKG:2347) has been rather lacklustre of late and shareholders may be wondering what CEO Faat Chi Wu is planning to do about this. At the next AGM coming up on 29th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Yoho Group Holdings

Comparing Yoho Group Holdings Limited's CEO Compensation With The Industry

According to our data, Yoho Group Holdings Limited has a market capitalization of HK$384m, and paid its CEO total annual compensation worth HK$1.4m over the year to March 2025. That is, the compensation was roughly the same as last year. In particular, the salary of HK$832.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Multiline Retail industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.0m. That is to say, Faat Chi Wu is paid under the industry median. Furthermore, Faat Chi Wu directly owns HK$133m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Yoho Group Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

Yoho Group Holdings Limited's Growth

Over the past three years, Yoho Group Holdings Limited has seen its earnings per share (EPS) grow by 37% per year. Its revenue is down 10% over the previous 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Yoho Group Holdings Limited Been A Good Investment?

Few Yoho Group Holdings Limited shareholders would feel satisfied with the return of -39% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Yoho Group Holdings (1 is a bit concerning!) that you should be aware of before investing here.

Switching gears from Yoho Group Holdings, 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.