Key Insights

• OOH Holdings to hold its Annual General Meeting on 9th of September
• CEO Irene Chau's total compensation includes salary of HK$2.65m
• The total compensation is similar to the average for the industry
• OOH Holdings' three-year loss to shareholders was 75% while its EPS was down 45% over the past three years

In the past three years, the share price of OOH Holdings Limited (HKG:8091) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 9th of September will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

Comparing OOH Holdings Limited's CEO Compensation With The Industry

According to our data, OOH Holdings Limited has a market capitalization of HK$21m, and paid its CEO total annual compensation worth HK$2.6m over the year to March 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary of HK$2.6m is the entirety of the CEO compensation.

In comparison with other companies in the Hong Kong Media industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. From this we gather that Irene Chau is paid around the median for CEOs in the industry. Moreover, Irene Chau also holds HK$8.1m worth of OOH Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. On a company level, OOH Holdings prefers to reward its CEO through a salary, opting not to pay Irene Chau through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at OOH Holdings Limited's Growth Numbers

Over the last three years, OOH Holdings Limited has shrunk its earnings per share by 45% per year. It achieved revenue growth of 16% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 OOH Holdings Limited Been A Good Investment?

Few OOH Holdings Limited shareholders would feel satisfied with the return of -75% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

OOH Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In 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 is 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 3 warning signs for OOH Holdings that investors should look into moving forward.

Switching gears from OOH 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.