Key Insights

• Wise Ally International Holdings' Annual General Meeting to take place on 3rd of June
• Salary of HK$4.70m is part of CEO Raymond Chu's total remuneration
• The total compensation is 98% higher than the average for the industry
• Over the past three years, Wise Ally International Holdings' EPS fell by 5.2% and over the past three years, the total loss to shareholders 81%

Wise Ally International Holdings Limited (HKG:9918) has not performed well recently and CEO Raymond Chu will probably need to up their game. At the upcoming AGM on 3rd of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing Wise Ally International Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Wise Ally International Holdings Limited has a market capitalization of HK$62m, and reported total annual CEO compensation of HK$4.7m for the year to December 2023. Notably, that's an increase of 12% over the year before. Notably, the salary of HK$4.7m is the entirety of the CEO compensation.

In comparison with other companies in the Hong Kong Electronic industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.4m. Accordingly, our analysis reveals that Wise Ally International Holdings Limited pays Raymond Chu north of the industry median. What's more, Raymond Chu holds HK$47m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. On a company level, Wise Ally International Holdings prefers to reward its CEO through a salary, opting not to pay Raymond Chu through non-salary benefits. 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.

Wise Ally International Holdings Limited's Growth

Over the last three years, Wise Ally International Holdings Limited has shrunk its earnings per share by 5.2% per year. Its revenue is down 8.1% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Wise Ally International Holdings Limited Been A Good Investment?

The return of -81% over three years would not have pleased Wise Ally International Holdings Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Wise Ally International Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 3 which are a bit unpleasant) in Wise Ally International Holdings we think you should know about.

Switching gears from Wise Ally International Holdings, 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.