Key Insights

• SV Vision's Annual General Meeting to take place on 12th of June
• CEO Bonnie Chan Woo's total compensation includes salary of HK$2.40m
• The total compensation is similar to the average for the industry
• SV Vision's EPS declined by 25% over the past three years while total shareholder loss over the past three years was 83%

Shareholders will probably not be too impressed with the underwhelming results at SV Vision Limited (HKG:8429) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 12th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Bonnie Chan Woo Compare With Other Companies In The Industry?

At the time of writing, our data shows that SV Vision Limited has a market capitalization of HK$18m, and reported total annual CEO compensation of HK$2.4m for the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$2.40m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Commercial Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. From this we gather that Bonnie Chan Woo is paid around the median for CEOs in the industry. Moreover, Bonnie Chan Woo also holds HK$12m worth of SV Vision stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. SV Vision has gone down a largely traditional route, paying Bonnie Chan Woo a high salary, giving it preference over non-salary benefits. 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.

SV Vision Limited's Growth

SV Vision Limited has reduced its earnings per share by 25% a year over the last three years. It saw its revenue drop 9.9% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has SV Vision Limited Been A Good Investment?

The return of -83% over three years would not have pleased SV Vision Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Bonnie receives almost all of their compensation through a salary. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for SV Vision that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.