Here's Why Shareholders Should Examine B.Duck Semk Holdings International Limited's (HKG:2250) CEO Compensation Package More Closely

Key Insights

• B.Duck Semk Holdings International's Annual General Meeting to take place on 26th of May
• CEO Ha Lam Hui's total compensation includes salary of HK$1.28m
• The overall pay is comparable to the industry average
• Over the past three years, B.Duck Semk Holdings International's EPS fell by 88% and over the past three years, the total loss to shareholders 44%

We've discovered 1 warning sign about B.Duck Semk Holdings International. View them for free.

Shareholders will probably not be too impressed with the underwhelming results at B.Duck Semk Holdings International Limited (HKG:2250) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for B.Duck Semk Holdings International

How Does Total Compensation For Ha Lam Hui Compare With Other Companies In The Industry?

At the time of writing, our data shows that B.Duck Semk Holdings International Limited has a market capitalization of HK$903m, and reported total annual CEO compensation of HK$1.3m for the year to December 2024. We note that's a decrease of 9.9% compared to last year. In particular, the salary of HK$1.28m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Professional Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.8m. This suggests that B.Duck Semk Holdings International remunerates its CEO largely in line with the industry average. Moreover, Ha Lam Hui also holds HK$620m worth of B.Duck Semk Holdings International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$1.3m	HK$1.4m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$1.3m	HK$1.4m	100%

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. B.Duck Semk Holdings International has gone down a largely traditional route, paying Ha Lam Hui a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

B.Duck Semk Holdings International Limited's Growth

Over the last three years, B.Duck Semk Holdings International Limited has shrunk its earnings per share by 88% per year. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 B.Duck Semk Holdings International Limited Been A Good Investment?

With a total shareholder return of -44% over three years, B.Duck Semk Holdings International Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

B.Duck Semk Holdings International pays its CEO a majority of compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for B.Duck Semk Holdings International that investors should be aware of in a dynamic business environment.

Switching gears from B.Duck Semk Holdings International, 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.