It's Unlikely That BHCC Holding Limited's (HKG:1552) CEO Will See A Huge Pay Rise This Year

Key Insights

• BHCC Holding to hold its Annual General Meeting on 28th of June
• Total pay for CEO Xinping Yang includes S$420.0k salary
• Total compensation is 72% above industry average
• BHCC Holding's total shareholder return over the past three years was 17% while its EPS was down 14% over the past three years

Performance at BHCC Holding Limited (HKG:1552) has been reasonably good and CEO Xinping Yang has done a decent job of steering the company in the right direction. 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 28th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for BHCC Holding

Comparing BHCC Holding Limited's CEO Compensation With The Industry

At the time of writing, our data shows that BHCC Holding Limited has a market capitalization of HK$129m, and reported total annual CEO compensation of S$642k for the year to December 2023. This was the same amount the CEO received in the prior year. In particular, the salary of S$420.0k, 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$374k. This suggests that Xinping Yang is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	S$420k	S$420k	65%
Other	S$222k	S$222k	35%
Total Compensation	S$642k	S$642k	100%

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. It's interesting to note that BHCC Holding allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

BHCC Holding Limited's Growth

BHCC Holding Limited has reduced its earnings per share by 14% a year over the last three years. Its revenue is up 51% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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. 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 BHCC Holding Limited Been A Good Investment?

BHCC Holding Limited has served shareholders reasonably well, with a total return of 17% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

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. In our study, we found 2 warning signs for BHCC Holding you should be aware of, and 1 of them makes us a bit uncomfortable.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com