Key Insights

• i.century Holding's Annual General Meeting to take place on 18th of September
• CEO Wilson Leung's total compensation includes salary of HK$4.80m
• The overall pay is 130% above the industry average
• i.century Holding's three-year loss to shareholders was 25% while its EPS grew by 64% over the past three years

In the past three years, the share price of i.century Holding Limited (HKG:8507) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 18th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for i.century Holding

How Does Total Compensation For Wilson Leung Compare With Other Companies In The Industry?

According to our data, i.century Holding Limited has a market capitalization of HK$50m, and paid its CEO total annual compensation worth HK$4.8m over the year to March 2023. That is, the compensation was roughly the same as last year. In particular, the salary of HK$4.80m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. Hence, we can conclude that Wilson Leung is remunerated higher than the industry median.

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. i.century Holding pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

i.century Holding Limited's Growth

i.century Holding Limited has seen its earnings per share (EPS) increase by 64% a year over the past three years. In the last year, its revenue is down 25%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 i.century Holding Limited Been A Good Investment?

With a three year total loss of 25% for the shareholders, i.century Holding Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

i.century Holding pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for i.century Holding that investors should be aware of in a dynamic business environment.

Switching gears from i.century Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.