Increases to World-Link Logistics (Asia) Holding Limited's (HKG:6083) CEO Compensation Might Cool off for now

Key Insights

• World-Link Logistics (Asia) Holding will host its Annual General Meeting on 2nd of June
• Total pay for CEO Kwong Fat Yeung includes HK$2.74m salary
• The total compensation is 157% higher than the average for the industry
• Over the past three years, World-Link Logistics (Asia) Holding's EPS grew by 7.5% and over the past three years, the total shareholder return was 16%

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Under the guidance of CEO Kwong Fat Yeung, World-Link Logistics (Asia) Holding Limited (HKG:6083) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 2nd of June. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for World-Link Logistics (Asia) Holding

Comparing World-Link Logistics (Asia) Holding Limited's CEO Compensation With The Industry

According to our data, World-Link Logistics (Asia) Holding Limited has a market capitalization of HK$151m, and paid its CEO total annual compensation worth HK$3.4m over the year to December 2024. That's a modest increase of 4.0% on the prior year. We note that the salary portion, which stands at HK$2.74m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Logistics industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. Accordingly, our analysis reveals that World-Link Logistics (Asia) Holding Limited pays Kwong Fat Yeung north of the industry median. Furthermore, Kwong Fat Yeung directly owns HK$29m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 88% of total compensation represents salary and 12% is other remuneration. There isn't a significant difference between World-Link Logistics (Asia) Holding and the broader market, in terms of salary allocation in the overall compensation package. 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 World-Link Logistics (Asia) Holding Limited's Growth Numbers

World-Link Logistics (Asia) Holding Limited has seen its earnings per share (EPS) increase by 7.5% a year over the past three years. In the last year, its revenue is up 6.6%.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has World-Link Logistics (Asia) Holding Limited Been A Good Investment?

World-Link Logistics (Asia) Holding Limited has served shareholders reasonably well, with a total return of 16% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for World-Link Logistics (Asia) Holding (1 doesn't sit too well with us!) that you should be aware of before investing here.

Switching gears from World-Link Logistics (Asia) Holding, 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.