Shareholders Will Probably Hold Off On Increasing Cool Link (Holdings) Limited's (HKG:8491) CEO Compensation For The Time Being

Key Insights

• Cool Link (Holdings)'s Annual General Meeting to take place on 25th of June
• CEO R Gay Gay's total compensation includes salary of S$288.0k
• The overall pay is 573% above the industry average
• Cool Link (Holdings)'s three-year loss to shareholders was 12% while its EPS grew by 30% over the past three years

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

In the past three years, shareholders of Cool Link (Holdings) Limited (HKG:8491) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Cool Link (Holdings)

How Does Total Compensation For R Gay Gay Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cool Link (Holdings) Limited has a market capitalization of HK$215m, and reported total annual CEO compensation of S$1.2m for the year to December 2024. We note that's an increase of 59% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$288k.

In comparison with other companies in the Hong Kong Consumer Retailing industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was S$176k. This suggests that R Gay Gay is paid more than the median for the industry. What's more, R Gay Gay holds HK$7.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. In Cool Link (Holdings)'s case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Cool Link (Holdings) Limited's Growth Numbers

Over the past three years, Cool Link (Holdings) Limited has seen its earnings per share (EPS) grow by 30% per year. It saw its revenue drop 4.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Cool Link (Holdings) Limited Been A Good Investment?

Given the total shareholder loss of 12% over three years, many shareholders in Cool Link (Holdings) Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 4 warning signs for Cool Link (Holdings) you should be aware of, and 3 of them are potentially serious.

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.

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.