Here's Why It's Unlikely That Forward Fashion (International) Holdings Company Limited's (HKG:2528) CEO Will See A Pay Rise This Year

Key Insights

• Forward Fashion (International) Holdings to hold its Annual General Meeting on 6th of June
• CEO Xingyi Chen's total compensation includes salary of HK$1.26m
• The overall pay is comparable to the industry average
• Forward Fashion (International) Holdings' EPS declined by 87% over the past three years while total shareholder loss over the past three years was 64%

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Shareholders will probably not be too impressed with the underwhelming results at Forward Fashion (International) Holdings Company Limited (HKG:2528) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 6th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Forward Fashion (International) Holdings

How Does Total Compensation For Xingyi Chen Compare With Other Companies In The Industry?

According to our data, Forward Fashion (International) Holdings Company Limited has a market capitalization of HK$100m, and paid its CEO total annual compensation worth HK$1.4m over the year to December 2024. That's a slight decrease of 3.9% on the prior year. We note that the salary portion, which stands at HK$1.26m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Specialty Retail industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. So it looks like Forward Fashion (International) Holdings compensates Xingyi Chen in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. Our data reveals that Forward Fashion (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 Forward Fashion (International) Holdings Company Limited's Growth Numbers

Forward Fashion (International) Holdings Company Limited has reduced its earnings per share by 87% a year over the last three years. In the last year, its revenue is down 6.9%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Forward Fashion (International) Holdings Company Limited Been A Good Investment?

Few Forward Fashion (International) Holdings Company Limited shareholders would feel satisfied with the return of -64% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, the board will get the chance to explain the steps it plans to take to improve business performance.

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. That's why we did some digging and identified 1 warning sign for Forward Fashion (International) Holdings that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.