It's Unlikely That Sany Heavy Equipment International Holdings Company Limited's (HKG:631) CEO Will See A Huge Pay Rise This Year

Key Insights

• Sany Heavy Equipment International Holdings' Annual General Meeting to take place on 31st of May
• CEO Jian Qi's total compensation includes salary of CN¥5.57m
• Total compensation is 254% above industry average
• Over the past three years, Sany Heavy Equipment International Holdings' EPS grew by 17% and over the past three years, the total loss to shareholders 28%

Shareholders of Sany Heavy Equipment International Holdings Company Limited (HKG:631) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 31st of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Sany Heavy Equipment International Holdings

How Does Total Compensation For Jian Qi Compare With Other Companies In The Industry?

According to our data, Sany Heavy Equipment International Holdings Company Limited has a market capitalization of HK$19b, and paid its CEO total annual compensation worth CN¥12m over the year to December 2023. We note that's a decrease of 49% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥5.6m.

For comparison, other companies in the Hong Kong Machinery industry with market capitalizations ranging between HK$16b and HK$50b had a median total CEO compensation of CN¥3.5m. This suggests that Jian Qi is paid more than the median for the industry. What's more, Jian Qi holds HK$2.3m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	CN¥5.6m	CN¥17m	45%
Other	CN¥6.8m	CN¥7.5m	55%
Total Compensation	CN¥12m	CN¥24m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. It's interesting to note that Sany Heavy Equipment International Holdings allocates a smaller portion of compensation to salary 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 Sany Heavy Equipment International Holdings Company Limited's Growth Numbers

Sany Heavy Equipment International Holdings Company Limited's earnings per share (EPS) grew 17% per year over the last three years. In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sany Heavy Equipment International Holdings Company Limited Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Sany Heavy Equipment International Holdings Company Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Sany Heavy Equipment International Holdings that investors should be aware of in a dynamic business environment.

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.