Shareholders May Be More Conservative With Time Interconnect Technology Limited's (HKG:1729) CEO Compensation For Now

Key Insights

• Time Interconnect Technology will host its Annual General Meeting on 29th of May
• Total pay for CEO Simon Cua includes HK$3.61m salary
• Total compensation is 143% above industry average
• Time Interconnect Technology's total shareholder return over the past three years was 447% while its EPS grew by 19% over the past three years

Performance at Time Interconnect Technology Limited (HKG:1729) has been reasonably good and CEO Simon Cua 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 29th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Time Interconnect Technology

Comparing Time Interconnect Technology Limited's CEO Compensation With The Industry

According to our data, Time Interconnect Technology Limited has a market capitalization of HK$4.1b, and paid its CEO total annual compensation worth HK$7.4m over the year to December 2023. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$3.6m.

In comparison with other companies in the Hong Kong Electrical industry with market capitalizations ranging from HK$1.6b to HK$6.2b, the reported median CEO total compensation was HK$3.0m. This suggests that Simon Cua is paid more than the median for the industry. Moreover, Simon Cua also holds HK$22m 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	2023	2022	Proportion (2023)
Salary	HK$3.6m	HK$3.1m	49%
Other	HK$3.8m	HK$4.0m	51%
Total Compensation	HK$7.4m	HK$7.2m	100%

Talking in terms of the industry, salary represented approximately 78% of total compensation out of all the companies we analyzed, while other remuneration made up 22% of the pie. Time Interconnect Technology 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.

A Look at Time Interconnect Technology Limited's Growth Numbers

Over the past three years, Time Interconnect Technology Limited has seen its earnings per share (EPS) grow by 19% per year. In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Time Interconnect Technology Limited Been A Good Investment?

Most shareholders would probably be pleased with Time Interconnect Technology Limited for providing a total return of 447% over three years. 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...

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. That's why we did some digging and identified 1 warning sign for Time Interconnect Technology that you should be aware of before investing.

Switching gears from Time Interconnect Technology, 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.