Key Insights

• Qinqin Foodstuffs Group (Cayman) will host its Annual General Meeting on 17th of May
• Total pay for CEO Wenxu Wu includes CN¥572.0k salary
• Total compensation is 37% below industry average
• Qinqin Foodstuffs Group (Cayman)'s EPS grew by 42% over the past three years while total shareholder loss over the past three years was 63%

Performance at Qinqin Foodstuffs Group (Cayman) Company Limited (HKG:1583) has been rather uninspiring recently and shareholders may be wondering how CEO Wenxu Wu plans to fix this. At the next AGM coming up on 17th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

How Does Total Compensation For Wenxu Wu Compare With Other Companies In The Industry?

Our data indicates that Qinqin Foodstuffs Group (Cayman) Company Limited has a market capitalization of HK$619m, and total annual CEO compensation was reported as CN¥777k for the year to December 2023. That is, the compensation was roughly the same as last year. In particular, the salary of CN¥572.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.2m. This suggests that Wenxu Wu is paid below the industry median.

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Although there is a difference in how total compensation is set, Qinqin Foodstuffs Group (Cayman) 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.

A Look at Qinqin Foodstuffs Group (Cayman) Company Limited's Growth Numbers

Qinqin Foodstuffs Group (Cayman) Company Limited's earnings per share (EPS) grew 42% per year over the last three years. In the last year, its revenue is up 2.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Qinqin Foodstuffs Group (Cayman) Company Limited Been A Good Investment?

The return of -63% over three years would not have pleased Qinqin Foodstuffs Group (Cayman) Company Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Qinqin Foodstuffs Group (Cayman) you should be aware of, and 1 of them is significant.

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.