We Think Shareholders Are Less Likely To Approve A Large Pay Rise For SiS International Holdings Limited's (HKG:529) CEO For Now

Key Insights

• SiS International Holdings to hold its Annual General Meeting on 31st of May
• CEO Kia Hong Lim's total compensation includes salary of HK$3.88m
• The overall pay is 97% above the industry average
• SiS International Holdings' total shareholder return over the past three years was 23% while its EPS grew by 76% over the past three years

CEO Kia Hong Lim has done a decent job of delivering relatively good performance at SiS International Holdings Limited (HKG:529) recently. As shareholders go into the upcoming AGM on 31st of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for SiS International Holdings

Comparing SiS International Holdings Limited's CEO Compensation With The Industry

Our data indicates that SiS International Holdings Limited has a market capitalization of HK$486m, and total annual CEO compensation was reported as HK$4.7m for the year to December 2023. That's a fairly small increase of 3.2% over the previous year. In particular, the salary of HK$3.88m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Electronic industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.4m. Hence, we can conclude that Kia Hong Lim is remunerated higher than the industry median. Furthermore, Kia Hong Lim directly owns HK$13m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	HK$3.9m	HK$3.7m	83%
Other	HK$797k	HK$792k	17%
Total Compensation	HK$4.7m	HK$4.5m	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. There isn't a significant difference between SiS International Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at SiS International Holdings Limited's Growth Numbers

SiS International Holdings Limited's earnings per share (EPS) grew 76% per year over the last three years. Its revenue is down 1.7% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SiS International Holdings Limited Been A Good Investment?

SiS International Holdings Limited has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) in SiS International Holdings we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.