Key Insights

• Stream Ideas Group to hold its Annual General Meeting on 14th of September
• Salary of HK$1.17m is part of CEO Jenny Cheung's total remuneration
• Total compensation is similar to the industry average
• Stream Ideas Group's EPS declined by 28% over the past three years while total shareholder loss over the past three years was 95%

The results at Stream Ideas Group Limited (HKG:8401) have been quite disappointing recently and CEO Jenny Cheung bears some responsibility for this. At the upcoming AGM on 14th of September, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Stream Ideas Group

Comparing Stream Ideas Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Stream Ideas Group Limited has a market capitalization of HK$21m, and reported total annual CEO compensation of HK$1.4m for the year to March 2023. Notably, that's a decrease of 18% over the year before. We note that the salary portion, which stands at HK$1.17m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Hong Kong Media industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.6m. So it looks like Stream Ideas Group compensates Jenny Cheung in line with the median for the industry.

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. Although there is a difference in how total compensation is set, Stream Ideas Group more or less reflects the market in terms of setting the salary. 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 Stream Ideas Group Limited's Growth Numbers

Over the last three years, Stream Ideas Group Limited has shrunk its earnings per share by 28% per year. It saw its revenue drop 21% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. 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 Stream Ideas Group Limited Been A Good Investment?

Few Stream Ideas Group Limited shareholders would feel satisfied with the return of -95% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

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 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 4 warning signs for Stream Ideas Group (of which 2 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Stream Ideas Group, 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.