Here's Why Best Linking Group Holdings Limited's (HKG:9882) CEO May Deserve A Raise

Key Insights

• Best Linking Group Holdings' Annual General Meeting to take place on 17th of May
• Total pay for CEO Yuk Chan includes HK$850.0k salary
• Total compensation is 53% below industry average
• Best Linking Group Holdings' total shareholder return over the past three years was 250% while its EPS grew by 17% over the past three years

Shareholders will be pleased by the impressive results for Best Linking Group Holdings Limited (HKG:9882) recently and CEO Yuk Chan has played a key role. At the upcoming AGM on 17th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Best Linking Group Holdings

How Does Total Compensation For Yuk Chan Compare With Other Companies In The Industry?

According to our data, Best Linking Group Holdings Limited has a market capitalization of HK$824m, and paid its CEO total annual compensation worth HK$933k over the year to December 2023. We note that's a small decrease of 6.1% on last year. Notably, the salary which is HK$850.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Machinery industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.0m. This suggests that Yuk Chan is paid below the industry median. Furthermore, Yuk Chan directly owns HK$618m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	HK$850k	HK$862k	91%
Other	HK$83k	HK$132k	9%
Total Compensation	HK$933k	HK$994k	100%

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. According to our research, Best Linking Group Holdings has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Best Linking Group Holdings Limited's Growth

Best Linking Group Holdings Limited's earnings per share (EPS) grew 17% per year over the last three years. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Best Linking Group Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 250% over three years, Best Linking Group Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Best Linking Group Holdings that investors should think about before committing capital to this stock.

Important note: Best Linking Group 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.