We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Prinx Chengshan Holdings Limited's (HKG:1809) CEO For Now

Key Insights

• Prinx Chengshan Holdings' Annual General Meeting to take place on 31st of May
• Total pay for CEO Baozhen Che includes CN¥3.13m salary
• The overall pay is 70% above the industry average
• Prinx Chengshan Holdings' total shareholder return over the past three years was 8.3% while its EPS grew by 19% over the past three years

Under the guidance of CEO Baozhen Che, Prinx Chengshan Holdings Limited (HKG:1809) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 31st of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

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$5.7b, and paid its CEO total annual compensation worth CN¥3.9m over the year to December 2023. Notably, that's an increase of 36% over the year before. In particular, the salary of CN¥3.13m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Auto Components industry with market capitalizations ranging between HK$3.1b and HK$13b had a median total CEO compensation of CN¥2.3m. Accordingly, our analysis reveals that Prinx Chengshan Holdings Limited pays Baozhen Che north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥3.1m	CN¥2.4m	81%
Other	CN¥756k	CN¥446k	19%
Total Compensation	CN¥3.9m	CN¥2.8m	100%

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Our data reveals that Prinx Chengshan Holdings allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Prinx Chengshan Holdings Limited's Growth Numbers

Prinx Chengshan Holdings Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. In the last year, its revenue is up 22%.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Prinx Chengshan Holdings Limited Been A Good Investment?

With a total shareholder return of 8.3% over three years, Prinx Chengshan Holdings Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Prinx Chengshan Holdings that investors should look into moving forward.

Switching gears from Prinx Chengshan Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.