Here's Why It's Unlikely That SiS Mobile Holdings Limited's (HKG:1362) CEO Will See A Pay Rise This Year

Key Insights

• SiS Mobile Holdings to hold its Annual General Meeting on 30th of May
• Salary of HK$1.70m is part of CEO Kiah Meng Lim's total remuneration
• The total compensation is similar to the average for the industry
• SiS Mobile Holdings' three-year loss to shareholders was 18% while its EPS was down 5.9% over the past three years

SiS Mobile Holdings Limited (HKG:1362) has not performed well recently and CEO Kiah Meng Lim will probably need to up their game. At the upcoming AGM on 30th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for SiS Mobile Holdings

How Does Total Compensation For Kiah Meng Lim Compare With Other Companies In The Industry?

At the time of writing, our data shows that SiS Mobile Holdings Limited has a market capitalization of HK$102m, and reported total annual CEO compensation of HK$2.2m for the year to December 2023. There was no change in the compensation compared to last year. We note that the salary portion, which stands at HK$1.70m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Electronic industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.4m. This suggests that SiS Mobile Holdings remunerates its CEO largely in line with the industry average. Moreover, Kiah Meng Lim also holds HK$723k worth of SiS Mobile Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	HK$1.7m	HK$1.7m	78%
Other	HK$468k	HK$468k	22%
Total Compensation	HK$2.2m	HK$2.2m	100%

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. SiS Mobile Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

A Look at SiS Mobile Holdings Limited's Growth Numbers

Over the last three years, SiS Mobile Holdings Limited has shrunk its earnings per share by 5.9% per year. In the last year, its revenue is up 5.4%.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet 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 SiS Mobile Holdings Limited Been A Good Investment?

Since shareholders would have lost about 18% over three years, some SiS Mobile Holdings Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 3 warning signs for SiS Mobile Holdings that investors should look into moving forward.

Switching gears from SiS Mobile 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.