Shareholders May Be Wary Of Increasing OneForce Holdings Limited's (HKG:1933) CEO Compensation Package

Key Insights

• OneForce Holdings will host its Annual General Meeting on 23rd of September
• Salary of CN¥670.0k is part of CEO Zhanjiang Wu's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, OneForce Holdings' EPS fell by 26% and over the past three years, the total loss to shareholders 57%

OneForce Holdings Limited (HKG:1933) has not performed well recently and CEO Zhanjiang Wu will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for OneForce Holdings

Comparing OneForce Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that OneForce Holdings Limited has a market capitalization of HK$80m, and reported total annual CEO compensation of CN¥837k for the year to March 2024. This was the same amount the CEO received in the prior year. Notably, the salary which is CN¥670.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Software industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.0m. From this we gather that Zhanjiang Wu is paid around the median for CEOs in the industry. Moreover, Zhanjiang Wu also holds HK$9.7m worth of OneForce Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2024	Proportion (2024)
Salary	CN¥670k	CN¥670k	80%
Other	CN¥167k	CN¥167k	20%
Total Compensation	CN¥837k	CN¥837k	100%

Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. OneForce Holdings pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at OneForce Holdings Limited's Growth Numbers

OneForce Holdings Limited has reduced its earnings per share by 26% a year over the last three years. It achieved revenue growth of 9.0% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. 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 OneForce Holdings Limited Been A Good Investment?

With a total shareholder return of -57% over three years, OneForce Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for OneForce Holdings that investors should be aware of in a dynamic business environment.

Switching gears from OneForce 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.