Shareholders May Be More Conservative With BOC Hong Kong (Holdings) Limited's (HKG:2388) CEO Compensation For Now

Key Insights

• BOC Hong Kong (Holdings) will host its Annual General Meeting on 26th of June
• CEO Yu Sun's total compensation includes salary of HK$6.50m
• The total compensation is 849% higher than the average for the industry
• BOC Hong Kong (Holdings)'s total shareholder return over the past three years was 35% while its EPS grew by 19% over the past three years

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Performance at BOC Hong Kong (Holdings) Limited (HKG:2388) has been reasonably good and CEO Yu Sun has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for BOC Hong Kong (Holdings)

How Does Total Compensation For Yu Sun Compare With Other Companies In The Industry?

Our data indicates that BOC Hong Kong (Holdings) Limited has a market capitalization of HK$368b, and total annual CEO compensation was reported as HK$9.4m for the year to December 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$6.50m, represents most of the total compensation being paid.

On comparing similar companies in the Hong Kong Banks industry with market capitalizations above HK$63b, we found that the median total CEO compensation was HK$991k. Hence, we can conclude that Yu Sun is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. There isn't a significant difference between BOC Hong Kong (Holdings) and the broader market, in terms of salary allocation in the overall compensation package. 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.

BOC Hong Kong (Holdings) Limited's Growth

Over the past three years, BOC Hong Kong (Holdings) Limited has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has BOC Hong Kong (Holdings) Limited Been A Good Investment?

Boasting a total shareholder return of 35% over three years, BOC Hong Kong (Holdings) Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for BOC Hong Kong (Holdings) that investors should look into moving forward.

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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.