Key Insights

• Sunwah Kingsway Capital Holdings will host its Annual General Meeting on 28th of November
• Salary of HK$2.28m is part of CEO Michael Choi's total remuneration
• The total compensation is similar to the average for the industry
• Sunwah Kingsway Capital Holdings' EPS declined by 60% over the past three years while total shareholder loss over the past three years was 19%

Sunwah Kingsway Capital Holdings Limited (HKG:188) has not performed well recently and CEO Michael Choi will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 28th of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Sunwah Kingsway Capital Holdings

How Does Total Compensation For Michael Choi Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sunwah Kingsway Capital Holdings Limited has a market capitalization of HK$192m, and reported total annual CEO compensation of HK$2.4m for the year to June 2023. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at HK$2.28m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Capital Markets industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.1m. This suggests that Sunwah Kingsway Capital Holdings remunerates its CEO largely in line with the industry average. Moreover, Michael Choi also holds HK$16m worth of Sunwah Kingsway Capital 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 86% of total compensation represents salary and 14% is other remuneration. Investors will find it interesting that Sunwah Kingsway Capital 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 Sunwah Kingsway Capital Holdings Limited's Growth Numbers

Sunwah Kingsway Capital Holdings Limited has reduced its earnings per share by 60% a year over the last three years. Its revenue is down 84% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sunwah Kingsway Capital Holdings Limited Been A Good Investment?

Since shareholders would have lost about 19% over three years, some Sunwah Kingsway Capital Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Sunwah Kingsway Capital Holdings pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Sunwah Kingsway Capital Holdings (3 are a bit unpleasant!) that you should be aware of before investing here.

Switching gears from Sunwah Kingsway Capital Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.