Key Insights

• Sitoy Group Holdings to hold its Annual General Meeting on 18th of November
• Total pay for CEO Wo Fai Yeung includes HK$3.58m salary
• The overall pay is 133% above the industry average
• Over the past three years, Sitoy Group Holdings' EPS grew by 47% and over the past three years, the total shareholder return was 61%

Under the guidance of CEO Wo Fai Yeung, Sitoy Group Holdings Limited (HKG:1023) has performed reasonably well recently. As shareholders go into the upcoming AGM on 18th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

How Does Total Compensation For Wo Fai Yeung Compare With Other Companies In The Industry?

According to our data, Sitoy Group Holdings Limited has a market capitalization of HK$591m, and paid its CEO total annual compensation worth HK$4.4m over the year to June 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of HK$3.58m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. Hence, we can conclude that Wo Fai Yeung is remunerated higher than the industry median. What's more, Wo Fai Yeung holds HK$146m 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 89% of total compensation represents salary and 11% is other remuneration. Our data reveals that Sitoy Group Holdings allocates salary more or less in line with the wider market. 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 Sitoy Group Holdings Limited's Growth Numbers

Sitoy Group Holdings Limited has seen its earnings per share (EPS) increase by 47% a year over the past three years. Its revenue is down 12% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Sitoy Group Holdings Limited Been A Good Investment?

We think that the total shareholder return of 61%, over three years, would leave most Sitoy Group Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Sitoy Group Holdings that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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