Key Insights

• Satu Holdings will host its Annual General Meeting on 2nd of August
• CEO Leung Choi She's total compensation includes salary of HK$733.0k
• Total compensation is 65% below industry average
• Satu Holdings' EPS declined by 49% over the past three years while total shareholder loss over the past three years was 66%

The disappointing performance at Satu Holdings Limited (HKG:8392) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 2nd of August. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

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

According to our data, Satu Holdings Limited has a market capitalization of HK$33m, and paid its CEO total annual compensation worth HK$812k over the year to March 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at HK$733.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Consumer Durables industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.3m. This suggests that Leung Choi She is paid below the industry median. Moreover, Leung Choi She also holds HK$20m worth of Satu Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Our data reveals that Satu Holdings allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Satu Holdings Limited's Growth Numbers

Over the last three years, Satu Holdings Limited has shrunk its earnings per share by 49% per year. Its revenue is down 25% 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Satu Holdings Limited Been A Good Investment?

The return of -66% over three years would not have pleased Satu Holdings Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Satu Holdings that you should be aware of before investing.

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.

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