Key Insights

• AJJ Medtech Holdings will host its Annual General Meeting on 29th of April

• CEO Alice Zhao's total compensation includes salary of S$235.6k

• The overall pay is comparable to the industry average

• Over the past three years, AJJ Medtech Holdings' EPS fell by 8.8% and over the past three years, the total loss to shareholders 75%

Shareholders of AJJ Medtech Holdings Limited (Catalist:584) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 29th of April will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for AJJ Medtech Holdings

How Does Total Compensation For Alice Zhao Compare With Other Companies In The Industry?

According to our data, AJJ Medtech Holdings Limited has a market capitalization of S$5.5m, and paid its CEO total annual compensation worth S$272k over the year to December 2023. Notably, that's an increase of 14% over the year before. We note that the salary portion, which stands at S$235.6k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Singapore Medical Equipment industry with market capitalizations below S$273m, reported a median total CEO compensation of S$231k. From this we gather that Alice Zhao is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. AJJ Medtech Holdings pays out 86% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at AJJ Medtech Holdings Limited's Growth Numbers

Over the last three years, AJJ Medtech Holdings Limited has shrunk its earnings per share by 8.8% per year. In the last year, its revenue is up 171%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 AJJ Medtech Holdings Limited Been A Good Investment?

With a total shareholder return of -75% over three years, AJJ Medtech Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 6 warning signs for AJJ Medtech Holdings you should be aware of, and 4 of them are concerning.

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.