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Bamboos Health Care Holdings Limited's (HKG:2293) CEO Compensation Is Looking A Bit Stretched At The Moment

Simply Wall St ·  Nov 22, 2023 18:01

Key Insights

  • Bamboos Health Care Holdings' Annual General Meeting to take place on 28th of November
  • CEO Winsome Hai's total compensation includes salary of HK$1.20m
  • The overall pay is 636% above the industry average
  • Bamboos Health Care Holdings' total shareholder return over the past three years was 20% while its EPS grew by 15% over the past three years

Under the guidance of CEO Winsome Hai, Bamboos Health Care Holdings Limited (HKG:2293) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28th of November. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Bamboos Health Care Holdings

How Does Total Compensation For Winsome Hai Compare With Other Companies In The Industry?

According to our data, Bamboos Health Care Holdings Limited has a market capitalization of HK$288m, and paid its CEO total annual compensation worth HK$12m over the year to June 2023. We note that's a decrease of 30% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$1.2m.

In comparison with other companies in the Hong Kong Healthcare industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. This suggests that Winsome Hai is paid more than the median for the industry. Furthermore, Winsome Hai directly owns HK$195m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20232022Proportion (2023)
Salary HK$1.2m HK$1.2m 10%
Other HK$11m HK$16m 90%
Total CompensationHK$12m HK$17m100%

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Bamboos Health Care Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
SEHK:2293 CEO Compensation November 22nd 2023

A Look at Bamboos Health Care Holdings Limited's Growth Numbers

Bamboos Health Care Holdings Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is down 9.6%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Bamboos Health Care Holdings Limited Been A Good Investment?

With a total shareholder return of 20% over three years, Bamboos Health Care Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Bamboos Health Care 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.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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