There Could Be A Chance Wine's Link International Holdings Limited's (HKG:8509) CEO Will Have Their Compensation Increased

Shareholders will be pleased by the robust performance of Wine's Link International Holdings Limited (HKG:8509) recently and this will be kept in mind in the upcoming AGM on 13 September 2021. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Wine's Link International Holdings

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

At the time of writing, our data shows that Wine's Link International Holdings Limited has a market capitalization of HK$264m, and reported total annual CEO compensation of HK$498k for the year to March 2021. There was no change in the compensation compared to last year. In particular, the salary of HK$480.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. In other words, Wine's Link International Holdings pays its CEO lower than the industry median. Moreover, Shirley Wong also holds HK$185m 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.

Component	2021	2020	Proportion (2021)
Salary	HK$480k	HK$480k	96%
Other	HK$18k	HK$18k	4%
Total Compensation	HK$498k	HK$498k	100%

Talking in terms of the industry, salary represented approximately 93% of total compensation out of all the companies we analyzed, while other remuneration made up 7% of the pie. Investors will find it interesting that Wine's Link International Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

Wine's Link International Holdings Limited's Growth

Wine's Link International Holdings Limited has seen its earnings per share (EPS) increase by 4.6% a year over the past three years. It achieved revenue growth of 12% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. 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?

Wine's Link International Holdings Limited has served shareholders reasonably well, with a total return of 16% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Wine's Link International Holdings pays its CEO a majority of compensation through a salary. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Wine's Link International 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.

When trading stocks or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.