Most Shareholders Will Probably Find That The Compensation For Futian Holdings Limited's (HKG:8196) CEO Is Reasonable

Key Insights

• Futian Holdings will host its Annual General Meeting on 23rd of May
• Total pay for CEO Yang Xie includes CN¥164.0k salary
• The overall pay is 60% below the industry average
• Futian Holdings' three-year loss to shareholders was 95% while its EPS grew by 49% over the past three years

Our free stock report includes 3 warning signs investors should be aware of before investing in Futian Holdings. Read for free now.

Performance at Futian Holdings Limited (HKG:8196) has been rather uninspiring recently and shareholders may be wondering how CEO Yang Xie plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 23rd of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Futian Holdings

Comparing Futian Holdings Limited's CEO Compensation With The Industry

Our data indicates that Futian Holdings Limited has a market capitalization of HK$22m, and total annual CEO compensation was reported as CN¥755k for the year to December 2024. That's a notable decrease of 51% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥164k.

For comparison, other companies in the Hong Kong Trade Distributors industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.9m. In other words, Futian Holdings pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥164k	CN¥462k	22%
Other	CN¥591k	CN¥1.1m	78%
Total Compensation	CN¥755k	CN¥1.5m	100%

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. It's interesting to note that Futian Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Futian Holdings Limited's Growth

Over the past three years, Futian Holdings Limited has seen its earnings per share (EPS) grow by 49% per year. It saw its revenue drop 57% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Futian Holdings Limited Been A Good Investment?

The return of -95% over three years would not have pleased Futian Holdings Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

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 3 warning signs for Futian Holdings you should be aware of, and 2 of them are a bit unpleasant.

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.