We Think A.Plus Group Holdings Limited's (HKG:1841) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• A.Plus Group Holdings' Annual General Meeting to take place on 29th of August
• Total pay for CEO Wing Kong Fong includes HK$2.96m salary
• The overall pay is 262% above the industry average
• Over the past three years, A.Plus Group Holdings' EPS fell by 42% and over the past three years, the total loss to shareholders 59%

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A.Plus Group Holdings Limited (HKG:1841) has not performed well recently and CEO Wing Kong Fong will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of August. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for A.Plus Group Holdings

Comparing A.Plus Group Holdings Limited's CEO Compensation With The Industry

Our data indicates that A.Plus Group Holdings Limited has a market capitalization of HK$82m, and total annual CEO compensation was reported as HK$4.8m for the year to March 2025. We note that's a small decrease of 4.5% on last year. In particular, the salary of HK$2.96m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Commercial Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.3m. Accordingly, our analysis reveals that A.Plus Group Holdings Limited pays Wing Kong Fong north of the industry median. Moreover, Wing Kong Fong also holds HK$24m worth of A.Plus Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. It's interesting to note that A.Plus Group Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at A.Plus Group Holdings Limited's Growth Numbers

A.Plus Group Holdings Limited has reduced its earnings per share by 42% a year over the last three years. In the last year, its revenue is down 22%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has A.Plus Group Holdings Limited Been A Good Investment?

Few A.Plus Group Holdings Limited shareholders would feel satisfied with the return of -59% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 2 warning signs for A.Plus Group Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.

Important note: A.Plus 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.