How Much is Wine's Link International Holdings' (HKG:8509) CEO Getting Paid?

Shirley Wong became the CEO of Wine's Link International Holdings Limited (HKG:8509) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Wine's Link International Holdings.

See our latest analysis for Wine's Link International Holdings

How Does Total Compensation For Shirley Wong Compare With Other Companies In The Industry?

Our data indicates that Wine's Link International Holdings Limited has a market capitalization of HK$264m, and total annual CEO compensation was reported as HK$498k for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$480.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.5m. In other words, Wine's Link International Holdings pays its CEO lower than the industry median. Moreover, Shirley Wong also holds HK$114m worth of Wine's Link 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 95% of total compensation represents salary and 4.8% is other remuneration. Wine's Link International 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.

Wine's Link International Holdings Limited's Growth

Wine's Link International Holdings Limited's earnings per share (EPS) grew 55% per year over the last three years. It saw its revenue drop 21% 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. 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 Wine's Link International Holdings Limited Been A Good Investment?

Since shareholders would have lost about 6.8% over three years, some Wine's Link International Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shirley receives almost all of their compensation through a salary. As we touched on above, Wine's Link International Holdings Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Shirley is compensated fairly. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

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 Wine's Link International Holdings (1 is a bit unpleasant!) that you should be aware of before investing here.

Switching gears from Wine's Link International 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. 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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