Key Insights

• Vobile Group's Annual General Meeting to take place on 28th of June
• Salary of HK$4.30m is part of CEO Bernard Wang's total remuneration
• The total compensation is 218% higher than the average for the industry
• Over the past three years, Vobile Group's EPS fell by 35% and over the past three years, the total loss to shareholders 86%

The underwhelming share price performance of Vobile Group Limited (HKG:3738) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 28th of June, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

How Does Total Compensation For Bernard Wang Compare With Other Companies In The Industry?

Our data indicates that Vobile Group Limited has a market capitalization of HK$2.6b, and total annual CEO compensation was reported as HK$10m for the year to December 2023. That's a notable decrease of 8.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$4.3m.

On examining similar-sized companies in the Hong Kong Software industry with market capitalizations between HK$1.6b and HK$6.2b, we discovered that the median CEO total compensation of that group was HK$3.1m. This suggests that Bernard Wang is paid more than the median for the industry. Moreover, Bernard Wang also holds HK$356m worth of Vobile Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Vobile Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Vobile Group Limited's Growth Numbers

Over the last three years, Vobile Group Limited has shrunk its earnings per share by 35% per year. In the last year, its revenue is up 39%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vobile Group Limited Been A Good Investment?

With a total shareholder return of -86% over three years, Vobile Group Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In 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 is in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Vobile Group that investors should look into moving forward.

Switching gears from Vobile Group, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com