We Think Shareholders May Want To Consider A Review Of New Universe Environmental Group Limited's (HKG:436) CEO Compensation Package
Key Insights
- New Universe Environmental Group to hold its Annual General Meeting on 23rd of May
- CEO Yu Xi's total compensation includes salary of HK$1.63m
- The total compensation is similar to the average for the industry
- Over the past three years, New Universe Environmental Group's EPS fell by 103% and over the past three years, the total loss to shareholders 74%
New Universe Environmental Group Limited (HKG:436) has not performed well recently and CEO Yu Xi will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 23rd of May. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for New Universe Environmental Group
Comparing New Universe Environmental Group Limited's CEO Compensation With The Industry
At the time of writing, our data shows that New Universe Environmental Group Limited has a market capitalization of HK$170m, and reported total annual CEO compensation of HK$1.7m for the year to December 2024. This was the same as last year. We note that the salary portion, which stands at HK$1.63m constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the Hong Kong Commercial Services industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.5m. This suggests that New Universe Environmental Group remunerates its CEO largely in line with the industry average.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$1.6m | HK$1.6m | 98% |
| Other | HK$33k | HK$33k | 2% |
| Total Compensation | HK$1.7m | HK$1.7m | 100% |
Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. New Universe Environmental Group has gone down a largely traditional route, paying Yu Xi a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at New Universe Environmental Group Limited's Growth Numbers
Over the last three years, New Universe Environmental Group Limited has shrunk its earnings per share by 103% per year. It saw its revenue drop 14% over the last year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. 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 New Universe Environmental Group Limited Been A Good Investment?
With a total shareholder return of -74% over three years, New Universe Environmental Group Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Yu receives almost all of their compensation through a salary. 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.
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 did our research and identified 3 warning signs (and 2 which make us uncomfortable) in New Universe Environmental Group we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.