Key Insights

• OneForce Holdings to hold its Annual General Meeting on 23rd of September
• Total pay for CEO Zhanjiang Wu includes CN¥670.0k salary
• Total compensation is similar to the industry average
• OneForce Holdings' EPS declined by 26% over the past three years while total shareholder loss over the past three years was 57%

OneForce Holdings Limited (HKG:1933) has not performed well recently and CEO Zhanjiang Wu will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing OneForce Holdings Limited's CEO Compensation With The Industry

According to our data, OneForce Holdings Limited has a market capitalization of HK$80m, and paid its CEO total annual compensation worth CN¥837k over the year to March 2024. There was no change in the compensation compared to last year. In particular, the salary of CN¥670.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Software industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.0m. So it looks like OneForce Holdings compensates Zhanjiang Wu in line with the median for the industry. Moreover, Zhanjiang Wu also holds HK$9.7m worth of OneForce Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. OneForce Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

OneForce Holdings Limited's Growth

Over the last three years, OneForce Holdings Limited has shrunk its earnings per share by 26% per year. In the last year, its revenue is up 9.0%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 OneForce Holdings Limited Been A Good Investment?

With a total shareholder return of -57% over three years, OneForce Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for OneForce Holdings that investors should be aware of in a dynamic business environment.

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.