We Think Shareholders May Want To Consider A Review Of In Construction Holdings Limited's (HKG:1500) CEO Compensation Package

Key Insights

• In Construction Holdings' Annual General Meeting to take place on 12th of September
• Salary of HK$1.75m is part of CEO Pak Man Lau's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, In Construction Holdings' EPS fell by 44% and over the past three years, the total loss to shareholders 73%

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In Construction Holdings Limited (HKG:1500) has not performed well recently and CEO Pak Man Lau will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 12th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for In Construction Holdings

Comparing In Construction Holdings Limited's CEO Compensation With The Industry

According to our data, In Construction Holdings Limited has a market capitalization of HK$52m, and paid its CEO total annual compensation worth HK$1.7m over the year to March 2025. That's a modest increase of 5.0% on the prior year. Notably, the salary of HK$1.7m is the entirety of the CEO compensation.

For comparison, other companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.5m. From this we gather that Pak Man Lau is paid around the median for CEOs in the industry. What's more, Pak Man Lau holds HK$17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	HK$1.7m	HK$1.7m	100%
Other	-	-	-
Total Compensation	HK$1.7m	HK$1.7m	100%

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. Speaking on a company level, In Construction Holdings prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at In Construction Holdings Limited's Growth Numbers

Over the last three years, In Construction Holdings Limited has shrunk its earnings per share by 44% per year. In the last year, its revenue is down 29%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 In Construction Holdings Limited Been A Good Investment?

Few In Construction Holdings Limited shareholders would feel satisfied with the return of -73% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

In Construction Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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. That's why we did some digging and identified 2 warning signs for In Construction Holdings that you should be aware of before investing.

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.