We Think Some Shareholders May Hesitate To Increase Time Interconnect Technology Limited's (HKG:1729) CEO Compensation

Under the guidance of CEO Simon Cua, Time Interconnect Technology Limited (HKG:1729) has performed reasonably well recently. 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 23 August 2021. However, some shareholders may still want to keep CEO compensation within reason.

View 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$764m, and paid its CEO total annual compensation worth HK$7.0m over the year to March 2021. That's a notable increase of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$3.1m.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.3m. This suggests that Simon Cua is paid more than the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	HK$3.1m	HK$3.1m	44%
Other	HK$3.9m	HK$3.1m	56%
Total Compensation	HK$7.0m	HK$6.2m	100%

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. In Time Interconnect Technology's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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

Time Interconnect Technology Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. It achieved revenue growth of 8.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

Most shareholders would probably be pleased with Time Interconnect Technology Limited for providing a total return of 44% over three years. 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Time Interconnect Technology (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.
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