Key Insights

• Wah Sun Handbags International Holdings to hold its Annual General Meeting on 2nd of September
• Salary of HK$2.72m is part of CEO Hing Ming Ma's total remuneration
• Total compensation is 56% above industry average
• Wah Sun Handbags International Holdings' total shareholder return over the past three years was 91% while its EPS grew by 72% over the past three years

CEO Hing Ming Ma has done a decent job of delivering relatively good performance at Wah Sun Handbags International Holdings Limited (HKG:2683) 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 September. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Hing Ming Ma Compare With Other Companies In The Industry?

At the time of writing, our data shows that Wah Sun Handbags International Holdings Limited has a market capitalization of HK$163m, and reported total annual CEO compensation of HK$3.0m for the year to March 2024. That's a slight decrease of 6.7% on the prior year. In particular, the salary of HK$2.72m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. Hence, we can conclude that Hing Ming Ma is remunerated higher than the industry median.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9% is other remuneration. Wah Sun Handbags International Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Wah Sun Handbags International Holdings Limited's Growth

Wah Sun Handbags International Holdings Limited's earnings per share (EPS) grew 72% per year over the last three years. It achieved revenue growth of 33% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Wah Sun Handbags International Holdings Limited Been A Good Investment?

We think that the total shareholder return of 91%, over three years, would leave most Wah Sun Handbags International Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Wah Sun Handbags International Holdings you should be aware of, and 1 of them is concerning.

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.