This Is Why Weimob Inc.'s (HKG:2013) CEO Compensation Looks Appropriate

Key Insights

• Weimob will host its Annual General Meeting on 10th of May
• CEO Taoyong Sun's total compensation includes salary of CN¥1.11m
• Total compensation is 53% below industry average
• Over the past three years, Weimob's EPS fell by 3.1% and over the past three years, the total loss to shareholders 90%

Performance at Weimob Inc. (HKG:2013) has been rather uninspiring recently and shareholders may be wondering how CEO Taoyong Sun plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 10th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Weimob

How Does Total Compensation For Taoyong Sun Compare With Other Companies In The Industry?

According to our data, Weimob Inc. has a market capitalization of HK$4.8b, and paid its CEO total annual compensation worth CN¥1.4m over the year to December 2023. That's a notable increase of 37% on last year. Notably, the salary which is CN¥1.11m, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Software industry with market capitalizations between HK$3.1b and HK$13b, we discovered that the median CEO total compensation of that group was CN¥2.9m. This suggests that Taoyong Sun is paid below the industry median. Furthermore, Taoyong Sun directly owns HK$404m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.1m	CN¥775k	80%
Other	CN¥278k	CN¥234k	20%
Total Compensation	CN¥1.4m	CN¥1.0m	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. Weimob 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 Weimob Inc.'s Growth Numbers

Weimob Inc. has reduced its earnings per share by 3.1% a year over the last three years. It achieved revenue growth of 21% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Weimob Inc. Been A Good Investment?

The return of -90% over three years would not have pleased Weimob Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. The poor performance of the share price might have something to do with the lack of earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Weimob that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.