Key Insights

• Wanjia Group Holdings will host its Annual General Meeting on 6th of September
• CEO Jia Jun Wang's total compensation includes salary of HK$1.84m
• The overall pay is comparable to the industry average
• Wanjia Group Holdings' EPS declined by 8.0% over the past three years while total shareholder loss over the past three years was 57%

The results at Wanjia Group Holdings Limited (HKG:401) have been quite disappointing recently and CEO Jia Jun Wang bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 6th 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Jia Jun Wang Compare With Other Companies In The Industry?

Our data indicates that Wanjia Group Holdings Limited has a market capitalization of HK$27m, and total annual CEO compensation was reported as HK$2.0m for the year to March 2024. We note that's an increase of 16% above last year. In particular, the salary of HK$1.84m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Healthcare industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.6m. So it looks like Wanjia Group Holdings compensates Jia Jun Wang in line with the median for the industry.

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. It's interesting to note that Wanjia Group Holdings pays out a greater portion of remuneration through salary, compared to the 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.

A Look at Wanjia Group Holdings Limited's Growth Numbers

Over the last three years, Wanjia Group Holdings Limited has shrunk its earnings per share by 8.0% per year. Its revenue is up 4.3% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Wanjia Group Holdings Limited Been A Good Investment?

Few Wanjia Group Holdings Limited shareholders would feel satisfied with the return of -57% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Wanjia Group Holdings you should be aware of, and 1 of them shouldn't be ignored.

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.