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Key Insights

• Volcano Spring International Holdings to hold its Annual General Meeting on 28th of June
• Salary of CN¥1.09m is part of CEO Ji Can Yue Maeck's total remuneration
• The total compensation is 50% less than the average for the industry
• Volcano Spring International Holdings' EPS declined by 20% over the past three years while total shareholder loss over the past three years was 86%

The disappointing performance at Volcano Spring International Holdings Limited (HKG:1715) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 28th of June. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Volcano Spring International Holdings

Comparing Volcano Spring International Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Volcano Spring International Holdings Limited has a market capitalization of HK$45m, and reported total annual CEO compensation of CN¥1.1m for the year to December 2023. That's a modest increase of 5.0% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥1.1m.

For comparison, other companies in the Hong Kong Consumer Durables industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥2.2m. That is to say, Ji Can Yue Maeck is paid under the industry median.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. On a company level, Volcano Spring International Holdings prefers to reward its CEO through a salary, opting not to pay Ji Can Yue Maeck through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Volcano Spring International Holdings Limited's Growth

Over the last three years, Volcano Spring International Holdings Limited has shrunk its earnings per share by 20% per year. It saw its revenue drop 4.3% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Volcano Spring International Holdings Limited Been A Good Investment?

With a total shareholder return of -86% over three years, Volcano Spring International Holdings Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Volcano Spring International Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Volcano Spring International Holdings (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com