Key Insights

• Wisdomcome Group Holdings will host its Annual General Meeting on 6th of September
• Total pay for CEO Clara Siu includes HK$741.0k salary
• Total compensation is 72% below industry average
• Wisdomcome Group Holdings' EPS grew by 36% over the past three years while total shareholder loss over the past three years was 85%

Performance at Wisdomcome Group Holdings Limited (HKG:8079) has been rather uninspiring recently and shareholders may be wondering how CEO Clara Siu plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 6th of September. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Comparing Wisdomcome Group Holdings Limited's CEO Compensation With The Industry

According to our data, Wisdomcome Group Holdings Limited has a market capitalization of HK$13m, and paid its CEO total annual compensation worth HK$759k over the year to March 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$741.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Consumer Retailing industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.7m. This suggests that Clara Siu is paid below the industry median.

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. Wisdomcome Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wisdomcome Group Holdings Limited's Growth Numbers

Wisdomcome Group Holdings Limited's earnings per share (EPS) grew 36% per year over the last three years. Its revenue is down 25% over the previous year.

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 Wisdomcome Group Holdings Limited Been A Good Investment?

Few Wisdomcome Group Holdings Limited shareholders would feel satisfied with the return of -85% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Clara receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Wisdomcome Group Holdings (of which 3 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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.