It's Unlikely That Wei Yuan Holdings Limited's (HKG:1343) CEO Will See A Huge Pay Rise This Year

Key Insights

• Wei Yuan Holdings' Annual General Meeting to take place on 19th of June
• Total pay for CEO Tian Fah Ng includes S$503.0k salary
• The overall pay is 77% above the industry average
• Wei Yuan Holdings' three-year loss to shareholders was 34% while its EPS grew by 48% over the past three years

Shareholders of Wei Yuan Holdings Limited (HKG:1343) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 19th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Wei Yuan Holdings

Comparing Wei Yuan Holdings Limited's CEO Compensation With The Industry

Our data indicates that Wei Yuan Holdings Limited has a market capitalization of HK$90m, and total annual CEO compensation was reported as S$660k for the year to December 2023. That is, the compensation was roughly the same as last year. In particular, the salary of S$503.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Construction industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was S$373k. Hence, we can conclude that Tian Fah Ng is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	S$503k	S$490k	76%
Other	S$157k	S$165k	24%
Total Compensation	S$660k	S$655k	100%

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Our data reveals that Wei Yuan 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 Wei Yuan Holdings Limited's Growth Numbers

Wei Yuan Holdings Limited's earnings per share (EPS) grew 48% per year over the last three years. Its revenue is down 1.1% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Wei Yuan Holdings Limited Been A Good Investment?

The return of -34% over three years would not have pleased Wei Yuan Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders 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 compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Wei Yuan Holdings (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.