This Is Why Dragon Rise Group Holdings Limited's (HKG:6829) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• Dragon Rise Group Holdings will host its Annual General Meeting on 16th of August
• CEO Yuk-Kit Yip's total compensation includes salary of HK$794.0k
• The overall pay is 62% below the industry average
• Over the past three years, Dragon Rise Group Holdings' EPS grew by 83% and over the past three years, the total shareholder return was 5.0%

Shareholders will probably not be disappointed by the robust results at Dragon Rise Group Holdings Limited (HKG:6829) recently and they will be keeping this in mind as they go into the AGM on 16th of August. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for Dragon Rise Group Holdings

How Does Total Compensation For Yuk-Kit Yip Compare With Other Companies In The Industry?

According to our data, Dragon Rise Group Holdings Limited has a market capitalization of HK$151m, and paid its CEO total annual compensation worth HK$860k over the year to March 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$794.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Construction industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.3m. That is to say, Yuk-Kit Yip is paid under the industry median. Furthermore, Yuk-Kit Yip directly owns HK$112m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$794k	HK$791k	92%
Other	HK$66k	HK$66k	8%
Total Compensation	HK$860k	HK$857k	100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Dragon Rise Group Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Dragon Rise Group Holdings Limited's Growth Numbers

Dragon Rise Group Holdings Limited has seen its earnings per share (EPS) increase by 83% a year over the past three years. It achieved revenue growth of 20% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dragon Rise Group Holdings Limited Been A Good Investment?

With a total shareholder return of 5.0% over three years, Dragon Rise Group Holdings Limited has done okay by shareholders, but there's always room for improvement. 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.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Dragon Rise Group Holdings (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.