Why We Think Shareholders May Be Considering Bumping Up Wine's Link International Holdings Limited's (HKG:8509) CEO Compensation

Key Insights

• Wine's Link International Holdings' Annual General Meeting to take place on 11th of September
• Total pay for CEO Shirley Wong includes HK$761.0k salary
• The overall pay is 62% below the industry average
• Wine's Link International Holdings' total shareholder return over the past three years was 69% while its EPS grew by 23% over the past three years

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The solid performance at Wine's Link International Holdings Limited (HKG:8509) has been impressive and shareholders will probably be pleased to know that CEO Shirley Wong has delivered. This would be kept in mind at the upcoming AGM on 11th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Wine's Link International Holdings

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

According to our data, Wine's Link International Holdings Limited has a market capitalization of HK$284m, and paid its CEO total annual compensation worth HK$779k over the year to March 2025. Notably, that's an increase of 9.9% over the year before. In particular, the salary of HK$761.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Retail Distributors industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.1m. That is to say, Shirley Wong is paid under the industry median. Moreover, Shirley Wong also holds HK$199m worth of Wine's Link International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Investors will find it interesting that Wine's Link International Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Wine's Link International Holdings Limited's Growth Numbers

Wine's Link International Holdings Limited has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is up 73% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Wine's Link International Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 69% over three years, Wine's Link International Holdings Limited has done well by shareholders. 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.

In Summary...

Wine's Link International Holdings pays its CEO a majority of compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Wine's Link International Holdings that investors should think about before committing capital to this stock.

Important note: Wine's Link International Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.