It's Probably Less Likely That Kwong Man Kee Group Limited's (HKG:8023) CEO Will See A Huge Pay Rise This Year

Key Insights

• Kwong Man Kee Group's Annual General Meeting to take place on 29th of August
• CEO Jason Yip's total compensation includes salary of HK$1.57m
• Total compensation is similar to the industry average
• Kwong Man Kee Group's EPS grew by 3.3% over the past three years while total shareholder loss over the past three years was 21%

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In the past three years, the share price of Kwong Man Kee Group Limited (HKG:8023) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 29th of August. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Kwong Man Kee Group

Comparing Kwong Man Kee Group Limited's CEO Compensation With The Industry

According to our data, Kwong Man Kee Group Limited has a market capitalization of HK$173m, and paid its CEO total annual compensation worth HK$2.2m over the year to March 2025. We note that's a decrease of 9.8% compared to last year. In particular, the salary of HK$1.57m, 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$2.5m. So it looks like Kwong Man Kee Group compensates Jason Yip in line with the median for the industry.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. Kwong Man Kee Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kwong Man Kee Group Limited's Growth

Kwong Man Kee Group Limited's earnings per share (EPS) grew 3.3% per year over the last three years. Its revenue is up 13% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Kwong Man Kee Group Limited Been A Good Investment?

With a three year total loss of 21% for the shareholders, Kwong Man Kee Group Limited would certainly have some dissatisfied shareholders. 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 be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Kwong Man Kee Group that investors should look into moving forward.

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.