Key Insights

• eprint Group's Annual General Meeting to take place on 21st of August
• CEO William She's total compensation includes salary of HK$4.02m
• The total compensation is 147% higher than the average for the industry
• eprint Group's three-year loss to shareholders was 60% while its EPS was down 117% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at eprint Group Limited (HKG:1884) recently. At the upcoming AGM on 21st of August, shareholders can hear from the board including their plans for turning around performance. 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 William She Compare With Other Companies In The Industry?

According to our data, eprint Group Limited has a market capitalization of HK$58m, and paid its CEO total annual compensation worth HK$4.7m over the year to March 2024. We note that's an increase of 25% above last year. In particular, the salary of HK$4.02m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Commercial Services industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. Accordingly, our analysis reveals that eprint Group Limited pays William She north of the industry median.

On an industry level, around 81% of total compensation represents salary and 19% is other remuneration. Although there is a difference in how total compensation is set, eprint Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

eprint Group Limited's Growth

Over the last three years, eprint Group Limited has shrunk its earnings per share by 117% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. 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 eprint Group Limited Been A Good Investment?

Few eprint Group Limited shareholders would feel satisfied with the return of -60% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for eprint Group 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.