Why We Think Wisdomcome Group Holdings Limited's (HKG:8079) CEO Compensation Is Not Excessive At All

Key Insights

• Wisdomcome Group Holdings will host its Annual General Meeting on 26th of September
• Total pay for CEO Clara Siu includes HK$741.0k salary
• The overall pay is 54% below the industry average
• Over the past three years, Wisdomcome Group Holdings' EPS grew by 21% and over the past three years, the total loss to shareholders 81%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The performance at Wisdomcome Group Holdings Limited (HKG:8079) has been rather lacklustre of late and shareholders may be wondering what CEO Clara Siu is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 26th of September. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Wisdomcome Group Holdings

How Does Total Compensation For Clara Siu Compare With Other Companies In The Industry?

Our data indicates that Wisdomcome Group Holdings Limited has a market capitalization of HK$19m, and total annual CEO compensation was reported as HK$759k for the year to March 2025. There was no change in the compensation compared to last year. In particular, the salary of HK$741.0k, makes up a huge portion of the total compensation being paid to the CEO.

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 HK$1.6m. In other words, Wisdomcome Group Holdings pays its CEO lower than the industry median.

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Investors will find it interesting that Wisdomcome Group 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.

Wisdomcome Group Holdings Limited's Growth

Wisdomcome Group Holdings Limited's earnings per share (EPS) grew 21% per year over the last three years. Its revenue is down 22% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Wisdomcome Group Holdings Limited Been A Good Investment?

The return of -81% over three years would not have pleased Wisdomcome Group Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Clara receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 2 which are a bit unpleasant) in Wisdomcome Group Holdings we think you should know about.

Important note: Wisdomcome Group 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.

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.