How Much Is Wong's International Holdings Limited (HKG:99) Paying Its CEO?

Ben Wong has been the CEO of Wong's International Holdings Limited (HKG:99) since 2003, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Wong's International Holdings

How Does Total Compensation For Ben Wong Compare With Other Companies In The Industry?

According to our data, Wong's International Holdings Limited has a market capitalization of HK$1.1b, and paid its CEO total annual compensation worth HK$8.6m over the year to December 2019. We note that's an increase of 49% above last year. In particular, the salary of HK$4.34m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. This suggests that Ben Wong is paid more than the median for the industry. What's more, Ben Wong holds HK$312m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Wong's International Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Wong's International Holdings Limited's Growth

Over the last three years, Wong's International Holdings Limited has shrunk its earnings per share by 31% per year. Its revenue is down 21% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Wong's International Holdings Limited Been A Good Investment?

With a three year total loss of 20% for the shareholders, Wong's International Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Wong's International Holdings Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Wong's International Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Wong's International 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. 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.
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