It's Unlikely That Chinney Kin Wing Holdings Limited's (HKG:1556) CEO Will See A Huge Pay Rise This Year

Key Insights

• Chinney Kin Wing Holdings will host its Annual General Meeting on 6th of June
• Salary of HK$7.44m is part of CEO Johnny Yu's total remuneration
• Total compensation is 992% above industry average
• Chinney Kin Wing Holdings' EPS grew by 24% over the past three years while total shareholder return over the past three years was 132%

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CEO Johnny Yu has done a decent job of delivering relatively good performance at Chinney Kin Wing Holdings Limited (HKG:1556) recently. As shareholders go into the upcoming AGM on 6th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Chinney Kin Wing Holdings

Comparing Chinney Kin Wing Holdings Limited's CEO Compensation With The Industry

According to our data, Chinney Kin Wing Holdings Limited has a market capitalization of HK$495m, and paid its CEO total annual compensation worth HK$24m over the year to December 2024. That's a modest increase of 5.5% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$7.4m.

On comparing similar-sized companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.2m. Hence, we can conclude that Johnny Yu is remunerated higher than the industry median. Moreover, Johnny Yu also holds HK$1.7m worth of Chinney Kin Wing Holdings stock directly under their own name.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Chinney Kin Wing Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Chinney Kin Wing Holdings Limited's Growth

Over the past three years, Chinney Kin Wing Holdings Limited has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 17% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Chinney Kin Wing Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 132% over three years, Chinney Kin Wing Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 2 warning signs for Chinney Kin Wing Holdings that investors should look into moving forward.

Switching gears from Chinney Kin Wing Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.