Wei Yuan Holdings Limited's (HKG:1343) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Wei Yuan Holdings will host its Annual General Meeting on 18th of June
• Salary of S$516.0k is part of CEO Tian Fah Ng's total remuneration
• The total compensation is 72% higher than the average for the industry
• Wei Yuan Holdings' EPS grew by 3.5% over the past three years while total shareholder loss over the past three years was 18%

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In the past three years, the share price of Wei Yuan Holdings Limited (HKG:1343) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18th of June. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Wei Yuan Holdings

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

At the time of writing, our data shows that Wei Yuan Holdings Limited has a market capitalization of HK$82m, and reported total annual CEO compensation of S$634k for the year to December 2024. We note that's a small decrease of 3.9% on last year. Notably, the salary which is S$516.0k, represents most of the total compensation being paid.

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$370k. Hence, we can conclude that Tian Fah Ng is remunerated higher than the industry median.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. There isn't a significant difference between Wei Yuan Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Wei Yuan Holdings Limited's Growth

Wei Yuan Holdings Limited has seen its earnings per share (EPS) increase by 3.5% a year over the past three years. It saw its revenue drop 4.5% over the last year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Wei Yuan Holdings Limited Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Wei Yuan Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is concerning) in Wei Yuan Holdings we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.