Everbright Securities Company Limited's (SHSE:601788) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Everbright Securities will host its Annual General Meeting on 28th of May
• Total pay for CEO Qiuming Liu includes CN¥1.54m salary
• The overall pay is 117% above the industry average
• Everbright Securities' total shareholder return over the past three years was 0.8% while its EPS grew by 28% over the past three years

Under the guidance of CEO Qiuming Liu, Everbright Securities Company Limited (SHSE:601788) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Everbright Securities

Comparing Everbright Securities Company Limited's CEO Compensation With The Industry

According to our data, Everbright Securities Company Limited has a market capitalization of CN¥68b, and paid its CEO total annual compensation worth CN¥3.8m over the year to December 2023. That's a fairly small increase of 5.0% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at CN¥1.5m.

On comparing similar companies from the Chinese Capital Markets industry with market caps ranging from CN¥29b to CN¥87b, we found that the median CEO total compensation was CN¥1.8m. Accordingly, our analysis reveals that Everbright Securities Company Limited pays Qiuming Liu north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.5m	CN¥2.1m	40%
Other	CN¥2.3m	CN¥1.5m	60%
Total Compensation	CN¥3.8m	CN¥3.7m	100%

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. Our data reveals that Everbright Securities allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Everbright Securities Company Limited's Growth Numbers

Everbright Securities Company Limited's earnings per share (EPS) grew 28% per year over the last three years. It saw its revenue drop 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Everbright Securities Company Limited Been A Good Investment?

Everbright Securities Company Limited has not done too badly by shareholders, with a total return of 0.8%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Everbright Securities (1 is a bit concerning!) that you should be aware of before investing here.

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.

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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.