Shareholders May Be More Conservative With Wise Ally International Holdings Limited's (HKG:9918) CEO Compensation For Now

Key Insights

• Wise Ally International Holdings to hold its Annual General Meeting on 2nd of June
• Total pay for CEO Raymond Chu includes HK$4.94m salary
• The total compensation is 113% higher than the average for the industry
• Wise Ally International Holdings' three-year loss to shareholders was 36% while its EPS grew by 53% over the past three years

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The underwhelming share price performance of Wise Ally International Holdings Limited (HKG:9918) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 2nd of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Wise Ally International Holdings

How Does Total Compensation For Raymond Chu Compare With Other Companies In The Industry?

Our data indicates that Wise Ally International Holdings Limited has a market capitalization of HK$118m, and total annual CEO compensation was reported as HK$5.2m for the year to December 2024. Notably, that's an increase of 11% over the year before. In particular, the salary of HK$4.94m, 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$2.5m. This suggests that Raymond Chu is paid more than the median for the industry. Moreover, Raymond Chu also holds HK$89m worth of Wise Ally International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. It's interesting to note that Wise Ally International Holdings pays out a greater portion of remuneration through salary, compared to the industry. 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.

Wise Ally International Holdings Limited's Growth

Wise Ally International Holdings Limited has seen its earnings per share (EPS) increase by 53% a year over the past three years. It achieved revenue growth of 2.7% 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 modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Wise Ally International Holdings Limited Been A Good Investment?

The return of -36% over three years would not have pleased Wise Ally International Holdings Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Wise Ally International Holdings (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Important note: Wise Ally International Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.