We Think Shareholders May Want To Consider A Review Of Esprit Holdings Limited's (HKG:330) CEO Compensation Package

Explore Esprit Holdings's Fair Values from the Community and select yours

Key Insights

• Esprit Holdings will host its Annual General Meeting on 21st of August
• CEO William Pak's total compensation includes salary of HK$1.63m
• Total compensation is similar to the industry average
• Esprit Holdings' three-year loss to shareholders was 94% while its EPS was down 67% over the past three years

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Esprit Holdings Limited (HKG:330) has not performed well recently and CEO William Pak will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of August. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Esprit Holdings

How Does Total Compensation For William Pak Compare With Other Companies In The Industry?

Our data indicates that Esprit Holdings Limited has a market capitalization of HK$277m, and total annual CEO compensation was reported as HK$1.6m for the year to December 2024. Notably, that's a decrease of 10% over the year before. Notably, the salary which is HK$1.63m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Specialty Retail industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. So it looks like Esprit Holdings compensates William Pak in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	HK$1.6m	HK$1.8m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$1.6m	HK$1.8m	100%

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. Esprit Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Esprit Holdings Limited's Growth

Over the last three years, Esprit Holdings Limited has shrunk its earnings per share by 67% per year. Its revenue is down 16% over the previous year.

Overall this is not a very positive result for shareholders. 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. 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 Esprit Holdings Limited Been A Good Investment?

The return of -94% over three years would not have pleased Esprit Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Esprit Holdings pays its CEO a majority of compensation through a salary. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Esprit Holdings that investors should be aware of in a dynamic business environment.

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.