Shareholders May Be A Bit More Conservative With WMCH Global Investment Limited's (HKG:8208) CEO Compensation For Now

Key Insights

• WMCH Global Investment will host its Annual General Meeting on 14th of June
• CEO Seng Wong's total compensation includes salary of S$224.0k
• The total compensation is similar to the average for the industry
• WMCH Global Investment's three-year loss to shareholders was 72% while its EPS grew by 24% over the past three years

In the past three years, the share price of WMCH Global Investment Limited (HKG:8208) has struggled to grow and now shareholders are sitting on a loss. 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 14th 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.

Check out our latest analysis for WMCH Global Investment

Comparing WMCH Global Investment Limited's CEO Compensation With The Industry

Our data indicates that WMCH Global Investment Limited has a market capitalization of HK$36m, and total annual CEO compensation was reported as S$251k for the year to December 2023. Notably, that's a decrease of 30% over the year before. In particular, the salary of S$224.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was S$302k. From this we gather that Seng Wong is paid around the median for CEOs in the industry.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Our data reveals that WMCH Global Investment allocates salary more or less in line with the wider market. 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.

WMCH Global Investment Limited's Growth

WMCH Global Investment Limited's earnings per share (EPS) grew 24% per year over the last three years. It achieved revenue growth of 7.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 WMCH Global Investment Limited Been A Good Investment?

With a total shareholder return of -72% over three years, WMCH Global Investment Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At 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 will likely improve performance in the future.

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've identified 3 warning signs for WMCH Global Investment 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.

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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.