We Think The Compensation For Wine's Link International Holdings Limited's (HKG:8509) CEO Looks About Right

Key Insights

• Wine's Link International Holdings' Annual General Meeting to take place on 24th of September
• Salary of HK$691.0k is part of CEO Shirley Wong's total remuneration
• Total compensation is 56% below industry average
• Wine's Link International Holdings' EPS grew by 4.2% over the past three years while total shareholder loss over the past three years was 45%

Shareholders may be wondering what CEO Shirley Wong plans to do to improve the less than great performance at Wine's Link International Holdings Limited (HKG:8509) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 24th of September. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out 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$148m, and reported total annual CEO compensation of HK$709k for the year to March 2024. That's a notable increase of 42% on last year. Notably, the salary which is HK$691.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Retail Distributors industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.6m. Accordingly, Wine's Link International Holdings pays its CEO under the industry median. Moreover, Shirley Wong also holds HK$104m 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	2024	2023	Proportion (2024)
Salary	HK$691k	HK$480k	97%
Other	HK$18k	HK$18k	3%
Total Compensation	HK$709k	HK$498k	100%

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. Wine's Link International Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wine's Link International Holdings Limited's Growth Numbers

Wine's Link International Holdings Limited's earnings per share (EPS) grew 4.2% per year over the last three years. Its revenue is up 47% over the last year.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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 Wine's Link International Holdings Limited Been A Good Investment?

With a total shareholder return of -45% over three years, Wine's Link International Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shirley receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

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. That's why we did our research, and identified 3 warning signs for Wine's Link International Holdings (of which 2 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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. 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.