Key Insights
- Theme International Holdings' Annual General Meeting to take place on 28th of June
- Salary of HK$1.44m is part of CEO Jiang Jiang's total remuneration
- The total compensation is similar to the average for the industry
- Over the past three years, Theme International Holdings' EPS grew by 33% and over the past three years, the total loss to shareholders 65%
In the past three years, the share price of Theme International Holdings Limited (HKG:990) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 28th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for Theme International Holdings
How Does Total Compensation For Jiang Jiang Compare With Other Companies In The Industry?
At the time of writing, our data shows that Theme International Holdings Limited has a market capitalization of HK$6.9b, and reported total annual CEO compensation of HK$3.6m for the year to December 2023. We note that's an increase of 32% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$1.4m.
For comparison, other companies in the Hong Kong Trade Distributors industry with market capitalizations ranging between HK$3.1b and HK$12b had a median total CEO compensation of HK$3.5m. So it looks like Theme International Holdings compensates Jiang Jiang in line with the median for the industry.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | HK$1.4m | HK$1.5m | 40% |
| Other | HK$2.2m | HK$1.3m | 60% |
| Total Compensation | HK$3.6m | HK$2.7m | 100% |
On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Theme International Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Theme International Holdings Limited's Growth Numbers
Over the past three years, Theme International Holdings Limited has seen its earnings per share (EPS) grow by 33% per year. In the last year, its revenue is up 42%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Theme International Holdings Limited Been A Good Investment?
The return of -65% over three years would not have pleased Theme International Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Theme International Holdings that you should be aware of before investing.
Important note: Theme International 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com