Most Shareholders Will Probably Agree With Bortex Global Limited's (HKG:8118) CEO Compensation

The performance at Bortex Global Limited (HKG:8118) has been rather lacklustre of late and shareholders may be wondering what CEO Xu Hua Shao is planning to do about this. At the next AGM coming up on 07 October 2021, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Bortex Global

How Does Total Compensation For Xu Hua Shao Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bortex Global Limited has a market capitalization of HK$130m, and reported total annual CEO compensation of HK$675k for the year to April 2021. This was the same as last year. Notably, the salary of HK$675k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.2m. In other words, Bortex Global pays its CEO lower than the industry median.

Component	2021	2020	Proportion (2021)
Salary	HK$675k	HK$675k	100%
Other	-	-	-
Total Compensation	HK$675k	HK$675k	100%

Talking in terms of the industry, salary represented approximately 87% of total compensation out of all the companies we analyzed, while other remuneration made up 13% of the pie. At the company level, Bortex Global pays Xu Hua Shao solely through a salary, preferring to go down a conventional route. 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 Bortex Global Limited's Growth Numbers

Bortex Global Limited's earnings per share (EPS) grew 55% per year over the last three years. It achieved revenue growth of 15% over the last year.

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. 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 Bortex Global Limited Been A Good Investment?

With a three year total loss of 10% for the shareholders, Bortex Global Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Bortex Global pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The uninspiring share price returns contrasts with the strong EPS growth, suggesting that there may be other factors at play causing it to diverge from fundamentals. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Bortex Global that investors should be aware of in a dynamic business environment.

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.

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.

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