Increases to Time Interconnect Technology Limited's (HKG:1729) CEO Compensation Might Cool off for now

Key Insights

• Time Interconnect Technology to hold its Annual General Meeting on 23rd of May
• Salary of HK$5.01m is part of CEO Simon Cua's total remuneration
• Total compensation is 907% above industry average
• Time Interconnect Technology's EPS grew by 34% over the past three years while total shareholder return over the past three years was 197%

Our free stock report includes 1 warning sign investors should be aware of before investing in Time Interconnect Technology. Read for free now.

Under the guidance of CEO Simon Cua, Time Interconnect Technology Limited (HKG:1729) has performed reasonably well recently. As shareholders go into the upcoming AGM on 23rd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Time Interconnect Technology

How Does Total Compensation For Simon Cua Compare With Other Companies In The Industry?

According to our data, Time Interconnect Technology Limited has a market capitalization of HK$8.5b, and paid its CEO total annual compensation worth HK$11m over the year to December 2024. That's a notable increase of 52% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$5.0m.

In comparison with other companies in the Hong Kong Electrical industry with market capitalizations ranging from HK$3.1b to HK$13b, the reported median CEO total compensation was HK$1.1m. This suggests that Simon Cua is paid more than the median for the industry. Moreover, Simon Cua also holds HK$46m worth of Time Interconnect Technology stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$5.0m	HK$3.6m	45%
Other	HK$6.2m	HK$3.8m	55%
Total Compensation	HK$11m	HK$7.4m	100%

Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. Time Interconnect Technology pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Time Interconnect Technology Limited's Growth Numbers

Time Interconnect Technology Limited's earnings per share (EPS) grew 34% per year over the last three years. In the last year, its revenue is up 15%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Time Interconnect Technology Limited Been A Good Investment?

We think that the total shareholder return of 197%, over three years, would leave most Time Interconnect Technology Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is 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. That's why we did some digging and identified 1 warning sign for Time Interconnect Technology that investors should think about before committing capital to this 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.