Shareholders May Not Be So Generous With Linklogis Inc.'s (HKG:9959) CEO Compensation And Here's Why

Key Insights

• Linklogis to hold its Annual General Meeting on 17th of June
• CEO Song Qun's total compensation includes salary of CN¥2.06m
• Total compensation is similar to the industry average
• Linklogis' three-year loss to shareholders was 73% while its EPS grew by 126% over the past three years

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The underwhelming share price performance of Linklogis Inc. (HKG:9959) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 17th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Linklogis

Comparing Linklogis Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Linklogis Inc. has a market capitalization of HK$3.4b, and reported total annual CEO compensation of CN¥4.1m for the year to December 2024. We note that's a small decrease of 6.2% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥2.1m.

In comparison with other companies in the Hong Kong Software industry with market capitalizations ranging from HK$1.6b to HK$6.3b, the reported median CEO total compensation was CN¥3.6m. From this we gather that Song Qun is paid around the median for CEOs in the industry. Furthermore, Song Qun directly owns HK$497m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 73% of total compensation represents salary, while the remainder of 27% is other remuneration. Linklogis sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Linklogis Inc.'s Growth Numbers

Over the past three years, Linklogis Inc. has seen its earnings per share (EPS) grow by 126% per year. Its revenue is up 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Linklogis Inc. Been A Good Investment?

The return of -73% over three years would not have pleased Linklogis 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 on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Linklogis that you should be aware of before investing.

Switching gears from Linklogis, 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.