Key Insights

• Wisdomcome Group Holdings to hold its Annual General Meeting on 22nd of September
• Salary of HK$723.0k is part of CEO Clara Siu's total remuneration
• Total compensation is 64% below industry average
• Wisdomcome Group Holdings' three-year loss to shareholders was 66% while its EPS grew by 18% over the past three years

Shareholders may be wondering what CEO Clara Siu plans to do to improve the less than great performance at Wisdomcome Group Holdings Limited (HKG:8079) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 22nd of September. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Wisdomcome Group Holdings

Comparing Wisdomcome Group Holdings Limited's CEO Compensation With The Industry

Our data indicates that Wisdomcome Group Holdings Limited has a market capitalization of HK$35m, and total annual CEO compensation was reported as HK$741k for the year to March 2023. Notably, that's a decrease of 9.7% over the year before. In particular, the salary of HK$723.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Consumer Retailing industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.1m. Accordingly, Wisdomcome Group Holdings pays its CEO under the industry median.

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. Wisdomcome Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

A Look at Wisdomcome Group Holdings Limited's Growth Numbers

Wisdomcome Group Holdings Limited's earnings per share (EPS) grew 18% per year over the last three years. It saw its revenue drop 35% over the last 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. 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 Wisdomcome Group Holdings Limited Been A Good Investment?

With a total shareholder return of -66% over three years, Wisdomcome Group Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Clara receives almost all of their compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board's judgement and decision-making is aligned with their expectations.

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 4 warning signs for Wisdomcome Group Holdings 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.