Key Insights

• Omnibridge Holdings' Annual General Meeting to take place on 27th of June
• Total pay for CEO Chee Kian Chew includes S$296.0k salary
• Total compensation is 45% above industry average
• Omnibridge Holdings' EPS grew by 100% over the past three years while total shareholder loss over the past three years was 75%

In the past three years, the share price of Omnibridge Holdings Limited (HKG:8462) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing Omnibridge Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Omnibridge Holdings Limited has a market capitalization of HK$46m, and reported total annual CEO compensation of S$440k for the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is S$296.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was S$304k. This suggests that Chee Kian Chew is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. Omnibridge Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Omnibridge Holdings Limited's Growth

Over the past three years, Omnibridge Holdings Limited has seen its earnings per share (EPS) grow by 100% per year. It saw its revenue drop 35% over the last 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. 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 Omnibridge Holdings Limited Been A Good Investment?

The return of -75% over three years would not have pleased Omnibridge Holdings Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At 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 will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Omnibridge Holdings (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Omnibridge Holdings, 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