Key Insights

• Theme International Holdings to hold its Annual General Meeting on 28th of June
• CEO Jiang Jiang's total compensation includes salary of HK$1.44m
• The overall pay is comparable to the industry average
• Theme International Holdings' three-year loss to shareholders was 65% while its EPS grew by 33% over the past three years

In the past three years, the share price of Theme International Holdings Limited (HKG:990) has struggled to grow and now shareholders are sitting on a loss. 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 28th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Comparing Theme International Holdings Limited's CEO Compensation With The Industry

According to our data, Theme International Holdings Limited has a market capitalization of HK$6.9b, and paid its CEO total annual compensation worth HK$3.6m over the year to December 2023. Notably, that's an increase of 32% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.4m.

In comparison with other companies in the Hong Kong Trade Distributors industry with market capitalizations ranging from HK$3.1b to HK$12b, the reported median CEO total compensation was HK$3.5m. So it looks like Theme International Holdings compensates Jiang Jiang in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8% of the pie. Theme International Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Theme International Holdings Limited's Growth Numbers

Over the past three years, Theme International Holdings Limited has seen its earnings per share (EPS) grow by 33% per year. Its revenue is up 42% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Theme International Holdings Limited Been A Good Investment?

Few Theme International Holdings Limited shareholders would feel satisfied with the return of -65% over three years. This suggests it would be unwise for the company to pay the CEO too 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 fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. 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.

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. That's why we did some digging and identified 1 warning sign for Theme International Holdings that investors should think about before committing capital to this stock.

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.

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