Key Insights

• IntelliCentrics Global Holdings' Annual General Meeting to take place on 15th of December
• Total pay for CEO Mike Sheehan includes US$808.0k salary
• The total compensation is 160% higher than the average for the industry
• IntelliCentrics Global Holdings' EPS declined by 52% over the past three years while total shareholder loss over the past three years was 39%

The results at IntelliCentrics Global Holdings Ltd. (HKG:6819) have been quite disappointing recently and CEO Mike Sheehan bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 15th of December. 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. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for IntelliCentrics Global Holdings

Comparing IntelliCentrics Global Holdings Ltd.'s CEO Compensation With The Industry

Our data indicates that IntelliCentrics Global Holdings Ltd. has a market capitalization of HK$1.8b, and total annual CEO compensation was reported as US$1.7m for the year to June 2023. Notably, that's an increase of 75% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$808k.

For comparison, other companies in the Hong Kong Healthcare Services industry with market capitalizations ranging between HK$781m and HK$3.1b had a median total CEO compensation of US$663k. Accordingly, our analysis reveals that IntelliCentrics Global Holdings Ltd. pays Mike Sheehan north of the industry median. Furthermore, Mike Sheehan directly owns HK$156m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. There isn't a significant difference between IntelliCentrics Global Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at IntelliCentrics Global Holdings Ltd.'s Growth Numbers

IntelliCentrics Global Holdings Ltd. has reduced its earnings per share by 52% a year over the last three years. In the last year, its revenue is up 8.1%.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 IntelliCentrics Global Holdings Ltd. Been A Good Investment?

With a total shareholder return of -39% over three years, IntelliCentrics Global Holdings Ltd. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for IntelliCentrics Global Holdings (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.

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.