Here's Why Maxicity Holdings Limited's (HKG:2295) CEO Might See A Pay Rise Soon

Key Insights

• Maxicity Holdings to hold its Annual General Meeting on 28th of May
• Salary of HK$1.52m is part of CEO Ka Ki Ho's total remuneration
• The overall pay is 45% below the industry average
• Maxicity Holdings' total shareholder return over the past three years was 193% while its EPS was down 32% over the past three years

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Shareholders will be pleased by the robust performance of Maxicity Holdings Limited (HKG:2295) recently and this will be kept in mind in the upcoming AGM on 28th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Maxicity Holdings

How Does Total Compensation For Ka Ki Ho Compare With Other Companies In The Industry?

According to our data, Maxicity Holdings Limited has a market capitalization of HK$1.3b, and paid its CEO total annual compensation worth HK$1.5m over the year to December 2024. That's a notable increase of 26% on last year. Notably, the salary which is HK$1.52m, represents most of the total compensation being paid.

On comparing similar companies from the Hong Kong Construction industry with market caps ranging from HK$783m to HK$3.1b, we found that the median CEO total compensation was HK$2.8m. In other words, Maxicity Holdings pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$1.5m	HK$1.2m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$1.5m	HK$1.2m	100%

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. Maxicity Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Maxicity Holdings Limited's Growth Numbers

Over the last three years, Maxicity Holdings Limited has shrunk its earnings per share by 32% per year. In the last year, its revenue is up 22%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Maxicity Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Maxicity Holdings Limited for providing a total return of 193% 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...

Ka Ki receives almost all of their compensation through a salary. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Maxicity Holdings you should be aware of, and 1 of them is significant.

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.