Key Insights

• Sisram Medical will host its Annual General Meeting on 24th of June
• Salary of US$863.0k is part of CEO Lior Dayan's total remuneration
• Total compensation is 330% above industry average
• Over the past three years, Sisram Medical's EPS grew by 31% and over the past three years, the total loss to shareholders 76%

Shareholders of Sisram Medical Ltd (HKG:1696) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 24th 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 think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

How Does Total Compensation For Lior Dayan Compare With Other Companies In The Industry?

According to our data, Sisram Medical Ltd has a market capitalization of HK$1.8b, and paid its CEO total annual compensation worth US$1.5m over the year to December 2023. We note that's a decrease of 43% compared to last year. We note that the salary of US$863.0k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Hong Kong Medical Equipment industry with market caps ranging from HK$781m to HK$3.1b, we found that the median CEO total compensation was US$355k. Hence, we can conclude that Lior Dayan is remunerated higher than the industry median. What's more, Lior Dayan holds HK$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. It's interesting to note that Sisram Medical allocates a smaller portion of compensation to salary in comparison 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.

Sisram Medical Ltd's Growth

Sisram Medical Ltd's earnings per share (EPS) grew 31% per year over the last three years. Its revenue is up 1.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sisram Medical Ltd Been A Good Investment?

With a total shareholder return of -76% over three years, Sisram Medical Ltd shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Sisram Medical that investors should look into moving forward.

Important note: Sisram Medical is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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