Key Insights

• WMCH Global Investment's Annual General Meeting to take place on 14th of June
• Salary of S$224.0k is part of CEO Seng Wong's total remuneration
• The total compensation is similar to the average for the industry
• WMCH Global Investment's EPS grew by 24% over the past three years while total shareholder loss over the past three years was 72%

The underwhelming share price performance of WMCH Global Investment Limited (HKG:8208) 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 14th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

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

At the time of writing, our data shows that WMCH Global Investment Limited has a market capitalization of HK$36m, and reported total annual CEO compensation of S$251k for the year to December 2023. Notably, that's a decrease of 30% over the year before. In particular, the salary of S$224.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was S$302k. So it looks like WMCH Global Investment compensates Seng Wong in line with the median for the industry.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. There isn't a significant difference between WMCH Global Investment and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at WMCH Global Investment Limited's Growth Numbers

WMCH Global Investment Limited's earnings per share (EPS) grew 24% per year over the last three years. It achieved revenue growth of 7.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 WMCH Global Investment Limited Been A Good Investment?

Few WMCH Global Investment Limited shareholders would feel satisfied with the return of -72% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for WMCH Global Investment that you should be aware of before investing.

Important note: WMCH Global Investment 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.