Key Insights

• Wine's Link International Holdings' Annual General Meeting to take place on 24th of September
• Salary of HK$691.0k is part of CEO Shirley Wong's total remuneration
• Total compensation is 56% below industry average
• Over the past three years, Wine's Link International Holdings' EPS grew by 4.2% and over the past three years, the total loss to shareholders 45%

Performance at Wine's Link International Holdings Limited (HKG:8509) has been rather uninspiring recently and shareholders may be wondering how CEO Shirley Wong plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 24th of September. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

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

Our data indicates that Wine's Link International Holdings Limited has a market capitalization of HK$148m, and total annual CEO compensation was reported as HK$709k for the year to March 2024. Notably, that's an increase of 42% over the year before. We note that the salary portion, which stands at HK$691.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Retail Distributors industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.6m. In other words, Wine's Link International Holdings pays its CEO lower than the industry median. Moreover, Shirley Wong also holds HK$104m worth of Wine's Link International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. Wine's Link International Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Wine's Link International Holdings Limited's Growth

Wine's Link International Holdings Limited has seen its earnings per share (EPS) increase by 4.2% a year over the past three years. In the last year, its revenue is up 47%.

We like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Wine's Link International Holdings Limited Been A Good Investment?

Few Wine's Link International Holdings Limited shareholders would feel satisfied with the return of -45% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shirley receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The disappointing performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Wine's Link International Holdings (2 shouldn't be ignored!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.