It's Unlikely That Shareholders Will Increase Stelux Holdings International Limited's (HKG:84) Compensation By Much This Year

Performance at Stelux Holdings International Limited (HKG:84) has not been particularly rosy recently and shareholders will likely be holding CEO Joseph C. C. Wong Kanjanapas and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 31 August 2021. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Stelux Holdings International

Comparing Stelux Holdings International Limited's CEO Compensation With the industry

According to our data, Stelux Holdings International Limited has a market capitalization of HK$78m, and paid its CEO total annual compensation worth HK$837k over the year to March 2021. Notably, that's a decrease of 42% over the year before. In particular, the salary of HK$699.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. That is to say, Joseph C. C. Wong Kanjanapas is paid under the industry median. Moreover, Joseph C. C. Wong Kanjanapas also holds HK$41m worth of Stelux Holdings International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	HK$699k	HK$1.4m	84%
Other	HK$138k	HK$58k	16%
Total Compensation	HK$837k	HK$1.4m	100%

Talking in terms of the industry, salary represented approximately 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. Our data reveals that Stelux Holdings International allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Stelux Holdings International Limited's Growth Numbers

Stelux Holdings International Limited has reduced its earnings per share by 26% a year over the last three years. In the last year, its revenue is down 32%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Stelux Holdings International Limited Been A Good Investment?

Few Stelux Holdings International Limited shareholders would feel satisfied with the return of -76% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Stelux Holdings International we think you should know about.

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.
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