Shareholders Will Probably Hold Off On Increasing China Pipe Group Limited's (HKG:380) CEO Compensation For The Time Being

Key Insights

• China Pipe Group's Annual General Meeting to take place on 27th of May
• CEO Ben Yu's total compensation includes salary of HK$2.64m
• The overall pay is 35% above the industry average
• China Pipe Group's EPS grew by 16% over the past three years while total shareholder return over the past three years was 4.3%

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CEO Ben Yu has done a decent job of delivering relatively good performance at China Pipe Group Limited (HKG:380) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for China Pipe Group

How Does Total Compensation For Ben Yu Compare With Other Companies In The Industry?

Our data indicates that China Pipe Group Limited has a market capitalization of HK$131m, and total annual CEO compensation was reported as HK$2.8m for the year to December 2024. This was the same amount the CEO received in the prior year. Notably, the salary which is HK$2.64m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Trade Distributors industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. This suggests that Ben Yu is paid more than the median for the industry. Furthermore, Ben Yu directly owns HK$15m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 92% of total compensation represents salary and 8% is other remuneration. China Pipe Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

China Pipe Group Limited's Growth

China Pipe Group Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. It achieved revenue growth of 9.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 China Pipe Group Limited Been A Good Investment?

China Pipe Group Limited has not done too badly by shareholders, with a total return of 4.3%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for China Pipe Group that investors should look into moving forward.

Important note: China Pipe Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.