Key Insights

• Sitoy Group Holdings will host its Annual General Meeting on 20th of November
• Salary of HK$3.58m is part of CEO Wo Fai Yeung's total remuneration
• The total compensation is 91% higher than the average for the industry
• Sitoy Group Holdings' total shareholder return over the past three years was 186% while its EPS grew by 112% over the past three years

Under the guidance of CEO Wo Fai Yeung, Sitoy Group Holdings Limited (HKG:1023) has performed reasonably well recently. As shareholders go into the upcoming AGM on 20th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Sitoy Group Holdings

How Does Total Compensation For Wo Fai Yeung Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sitoy Group Holdings Limited has a market capitalization of HK$850m, and reported total annual CEO compensation of HK$4.4m for the year to June 2023. We note that's an increase of 13% above last year. We note that the salary portion, which stands at HK$3.58m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.3m. This suggests that Wo Fai Yeung is paid more than the median for the industry. What's more, Wo Fai Yeung holds HK$208m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Although there is a difference in how total compensation is set, Sitoy Group Holdings more or less reflects the market in terms of setting the salary. 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 Sitoy Group Holdings Limited's Growth Numbers

Sitoy Group Holdings Limited's earnings per share (EPS) grew 112% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Sitoy Group Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 186% over three years, Sitoy Group Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 2 warning signs (and 1 which is a bit concerning) in Sitoy Group Holdings we think you should know about.

Important note: Sitoy 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.

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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.