It's Unlikely That Boltek Holdings Limited's (HKG:8601) CEO Will See A Huge Pay Rise This Year

Key Insights

• Boltek Holdings will host its Annual General Meeting on 2nd of May
• Total pay for CEO Kwan Tar Cheung includes HK$2.76m salary
• The total compensation is 113% higher than the average for the industry
• Boltek Holdings' total shareholder return over the past three years was 79% while its EPS grew by 12% over the past three years

Our free stock report includes 2 warning signs investors should be aware of before investing in Boltek Holdings. Read for free now.

Performance at Boltek Holdings Limited (HKG:8601) has been reasonably good and CEO Kwan Tar Cheung has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 2nd of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Boltek Holdings

How Does Total Compensation For Kwan Tar Cheung Compare With Other Companies In The Industry?

According to our data, Boltek Holdings Limited has a market capitalization of HK$208m, and paid its CEO total annual compensation worth HK$4.8m over the year to December 2024. We note that's a decrease of 34% compared to last year. In particular, the salary of HK$2.76m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Construction industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.2m. This suggests that Kwan Tar Cheung is paid more than the median for the industry. Furthermore, Kwan Tar Cheung directly owns HK$150m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$2.8m	HK$2.8m	58%
Other	HK$2.0m	HK$4.5m	42%
Total Compensation	HK$4.8m	HK$7.3m	100%

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. Boltek Holdings sets aside a smaller share of compensation for 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.

Boltek Holdings Limited's Growth

Boltek Holdings Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 9.9%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Boltek Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Boltek Holdings Limited for providing a total return of 79% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Boltek Holdings (1 is significant!) that you should be aware of before investing here.

Important note: Boltek Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.