Increases to CEO Compensation Might Be Put On Hold For Now at Snack Empire Holdings Limited (HKG:1843)

Key Insights

• Snack Empire Holdings will host its Annual General Meeting on 2nd of September
• Total pay for CEO Melvyn Wong includes S$1.21m salary
• Total compensation is 200% above industry average
• Over the past three years, Snack Empire Holdings' EPS fell by 105% and over the past three years, the total loss to shareholders 56%

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The underwhelming share price performance of Snack Empire Holdings Limited (HKG:1843) in the past three years would have disappointed many shareholders. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 2nd 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. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Snack Empire Holdings

How Does Total Compensation For Melvyn Wong Compare With Other Companies In The Industry?

According to our data, Snack Empire Holdings Limited has a market capitalization of HK$119m, and paid its CEO total annual compensation worth S$1.3m over the year to March 2025. Notably, that's a decrease of 10% over the year before. In particular, the salary of S$1.21m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Hospitality industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was S$425k. Hence, we can conclude that Melvyn Wong is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 87% of total compensation out of all the companies we analyzed, while other remuneration made up 13% of the pie. Although there is a difference in how total compensation is set, Snack Empire Holdings more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Snack Empire Holdings Limited's Growth

Over the last three years, Snack Empire Holdings Limited has shrunk its earnings per share by 105% per year. Its revenue is up 18% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Snack Empire Holdings Limited Been A Good Investment?

With a total shareholder return of -56% over three years, Snack Empire Holdings Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is significant) in Snack Empire Holdings we think you should know about.

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.