Shareholders of Hang Sang (Siu Po) International Holding Company Limited (HKG:3626) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 02 December 2022, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.
Check out our latest analysis for Hang Sang (Siu Po) International Holding
How Does Total Compensation For Samson Fung Compare With Other Companies In The Industry?
According to our data, Hang Sang (Siu Po) International Holding Company Limited has a market capitalization of HK$110m, and paid its CEO total annual compensation worth HK$2.2m over the year to June 2022. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$2.15m, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.2m. From this we gather that Samson Fung is paid around the median for CEOs in the industry.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | HK$2.2m | HK$2.2m | 99% |
| Other | HK$18k | HK$46k | 1% |
| Total Compensation | HK$2.2m | HK$2.2m | 100% |
On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Hang Sang (Siu Po) International Holding has gone down a largely traditional route, paying Samson Fung a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
SEHK:3626 CEO Compensation November 25th 2022A Look at Hang Sang (Siu Po) International Holding Company Limited's Growth Numbers
Hang Sang (Siu Po) International Holding Company Limited has reduced its earnings per share by 21% a year over the last three years. Its revenue is up 20% over the last year.
The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Hang Sang (Siu Po) International Holding Company Limited Been A Good Investment?
With a three year total loss of 24% for the shareholders, Hang Sang (Siu Po) International Holding Company Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Hang Sang (Siu Po) International Holding pays its CEO a majority of compensation through a salary. The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Hang Sang (Siu Po) International Holding we think you should know about.
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.
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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.