Increases to CEO Compensation Might Be Put On Hold For Now at Prinx Chengshan Holdings Limited (HKG:1809)
Key Insights
- Prinx Chengshan Holdings will host its Annual General Meeting on 23rd of May
- Total pay for CEO Baozhen Che includes CN¥2.06m salary
- Total compensation is 63% above industry average
- Over the past three years, Prinx Chengshan Holdings' EPS grew by 68% and over the past three years, the total shareholder return was 26%
Under the guidance of CEO Baozhen Che, Prinx Chengshan Holdings Limited (HKG:1809) 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 23rd of May. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Prinx Chengshan Holdings
Comparing Prinx Chengshan Holdings Limited's CEO Compensation With The Industry
According to our data, Prinx Chengshan Holdings Limited has a market capitalization of HK$5.2b, and paid its CEO total annual compensation worth CN¥3.5m over the year to December 2024. We note that's a decrease of 9.8% compared to last year. We note that the salary of CN¥2.06m makes up a sizeable portion of the total compensation received by the CEO.
In comparison with other companies in the Hong Kong Auto Components industry with market capitalizations ranging from HK$3.1b to HK$13b, the reported median CEO total compensation was CN¥2.1m. Accordingly, our analysis reveals that Prinx Chengshan Holdings Limited pays Baozhen Che north of the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥2.1m | CN¥3.1m | 59% |
| Other | CN¥1.4m | CN¥756k | 41% |
| Total Compensation | CN¥3.5m | CN¥3.9m | 100% |
On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. In Prinx Chengshan Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Prinx Chengshan Holdings Limited's Growth Numbers
Over the past three years, Prinx Chengshan Holdings Limited has seen its earnings per share (EPS) grow by 68% per year. In the last year, its revenue is up 10%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Prinx Chengshan Holdings Limited Been A Good Investment?
With a total shareholder return of 26% over three years, Prinx Chengshan Holdings Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Prinx Chengshan Holdings.
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.