Increases to CEO Compensation Might Be Put On Hold For Now at Gold Peak Technology Group Limited (HKG:40)

Key Insights

• Gold Peak Technology Group will host its Annual General Meeting on 2nd of September
• Salary of HK$8.53m is part of CEO Victor Lo's total remuneration
• The overall pay is 209% above the industry average
• Gold Peak Technology Group's EPS declined by 46% over the past three years while total shareholder return over the past three years was 17%

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The share price of Gold Peak Technology Group Limited (HKG:40) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 2nd of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Gold Peak Technology Group

Comparing Gold Peak Technology Group Limited's CEO Compensation With The Industry

Our data indicates that Gold Peak Technology Group Limited has a market capitalization of HK$623m, and total annual CEO compensation was reported as HK$9.3m for the year to March 2025. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at HK$8.53m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Electrical industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$3.0m. Hence, we can conclude that Victor Lo is remunerated higher than the industry median. Moreover, Victor Lo also holds HK$170m worth of Gold Peak Technology Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. According to our research, Gold Peak Technology Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Gold Peak Technology Group Limited's Growth

Gold Peak Technology Group Limited has reduced its earnings per share by 46% a year over the last three years. It achieved revenue growth of 5.8% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Gold Peak Technology Group Limited Been A Good Investment?

With a total shareholder return of 17% over three years, Gold Peak Technology Group Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with 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 5 warning signs for Gold Peak Technology Group you should be aware of, and 2 of them are concerning.

Important note: Gold Peak Technology 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.