Should Shareholders Reconsider China Aircraft Leasing Group Holdings Limited's (HKG:1848) CEO Compensation Package?

Key Insights

• China Aircraft Leasing Group Holdings will host its Annual General Meeting on 27th of May
• Salary of HK$1.87m is part of CEO Mike Poon's total remuneration
• The total compensation is 95% higher than the average for the industry
• China Aircraft Leasing Group Holdings' EPS declined by 22% over the past three years while total shareholder loss over the past three years was 2.2%

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The results at China Aircraft Leasing Group Holdings Limited (HKG:1848) have been quite disappointing recently and CEO Mike Poon bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for China Aircraft Leasing Group Holdings

How Does Total Compensation For Mike Poon Compare With Other Companies In The Industry?

Our data indicates that China Aircraft Leasing Group Holdings Limited has a market capitalization of HK$2.9b, and total annual CEO compensation was reported as HK$6.1m for the year to December 2024. Notably, that's an increase of 12% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$1.9m.

On examining similar-sized companies in the Hong Kong Trade Distributors industry with market capitalizations between HK$1.6b and HK$6.3b, we discovered that the median CEO total compensation of that group was HK$3.1m. Hence, we can conclude that Mike Poon is remunerated higher than the industry median. Moreover, Mike Poon also holds HK$69m worth of China Aircraft Leasing Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. It's interesting to note that China Aircraft Leasing Group Holdings allocates a smaller portion of compensation to salary in comparison 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 China Aircraft Leasing Group Holdings Limited's Growth Numbers

China Aircraft Leasing Group Holdings Limited has reduced its earnings per share by 22% a year over the last three years. Its revenue is down 6.9% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has China Aircraft Leasing Group Holdings Limited Been A Good Investment?

Given the total shareholder loss of 2.2% over three years, many shareholders in China Aircraft Leasing Group Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for China Aircraft Leasing Group Holdings you should be aware of, and 1 of them is potentially serious.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.