We Think Shareholders May Want To Consider A Review Of Xinyi Glass Holdings Limited's (HKG:868) CEO Compensation Package

Key Insights

• Xinyi Glass Holdings will host its Annual General Meeting on 30th of May
• Salary of CN¥7.39m is part of CEO Ching Sai Tung's total remuneration
• The overall pay is 140% above the industry average
• Xinyi Glass Holdings' three-year loss to shareholders was 54% while its EPS was down 31% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Xinyi Glass Holdings. Read for free now.

Shareholders will probably not be too impressed with the underwhelming results at Xinyi Glass Holdings Limited (HKG:868) recently. At the upcoming AGM on 30th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Xinyi Glass Holdings

How Does Total Compensation For Ching Sai Tung Compare With Other Companies In The Industry?

At the time of writing, our data shows that Xinyi Glass Holdings Limited has a market capitalization of HK$32b, and reported total annual CEO compensation of CN¥25m for the year to December 2024. That's a notable decrease of 26% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥7.4m.

On examining similar-sized companies in the Hong Kong Building industry with market capitalizations between HK$16b and HK$50b, we discovered that the median CEO total compensation of that group was CN¥11m. Accordingly, our analysis reveals that Xinyi Glass Holdings Limited pays Ching Sai Tung north of the industry median. Furthermore, Ching Sai Tung directly owns HK$4.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥7.4m	CN¥7.3m	29%
Other	CN¥18m	CN¥27m	71%
Total Compensation	CN¥25m	CN¥34m	100%

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Xinyi Glass Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Xinyi Glass Holdings Limited's Growth

Over the last three years, Xinyi Glass Holdings Limited has shrunk its earnings per share by 31% per year. Its revenue is down 8.1% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Xinyi Glass Holdings Limited Been A Good Investment?

Few Xinyi Glass Holdings Limited shareholders would feel satisfied with the return of -54% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Xinyi Glass Holdings that investors should look into moving forward.

Switching gears from Xinyi Glass Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.