Key Insights

• GET Holdings' Annual General Meeting to take place on 25th of June
• Salary of HK$1.13m is part of CEO Siu Cheong Lau's total remuneration
• Total compensation is similar to the industry average
• GET Holdings' EPS grew by 40% over the past three years while total shareholder loss over the past three years was 39%

Shareholders of GET Holdings Limited (HKG:8100) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 25th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

How Does Total Compensation For Siu Cheong Lau Compare With Other Companies In The Industry?

Our data indicates that GET Holdings Limited has a market capitalization of HK$109m, and total annual CEO compensation was reported as HK$1.3m for the year to December 2023. That's a fairly small increase of 3.8% over the previous year. We note that the salary portion, which stands at HK$1.13m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Software industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.2m. From this we gather that Siu Cheong Lau is paid around the median for CEOs in the industry.

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that GET Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

GET Holdings Limited's Growth

GET Holdings Limited has seen its earnings per share (EPS) increase by 40% a year over the past three years. In the last year, its revenue is down 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 GET Holdings Limited Been A Good Investment?

With a total shareholder return of -39% over three years, GET Holdings Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 did our research and spotted 1 warning sign for GET Holdings that investors should look into moving forward.

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.

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