Here's Why AV Promotions Holdings Limited's (HKG:8419) CEO May Not Expect A Pay Rise This Year

Performance at AV Promotions Holdings Limited (HKG:8419) has not been particularly rosy recently and shareholders will likely be holding CEO Bun Bun Fu and the board accountable for this. At the upcoming AGM on 31 May 2021, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for AV Promotions Holdings

How Does Total Compensation For Bun Bun Fu Compare With Other Companies In The Industry?

According to our data, AV Promotions Holdings Limited has a market capitalization of HK$85m, and paid its CEO total annual compensation worth HK$1.0m over the year to December 2020. Notably, that's a decrease of 20% over the year before. We note that the salary portion, which stands at HK$774.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.5m. That is to say, Bun Bun Fu is paid under the industry median.

Component	2020	2019	Proportion (2020)
Salary	HK$774k	HK$1.1m	74%
Other	HK$266k	HK$227k	26%
Total Compensation	HK$1.0m	HK$1.3m	100%

On an industry level, roughly 90% of total compensation represents salary and 10% is other remuneration. AV Promotions Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at AV Promotions Holdings Limited's Growth Numbers

Over the last three years, AV Promotions Holdings Limited has shrunk its earnings per share by 3.2% per year. It saw its revenue drop 34% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AV Promotions Holdings Limited Been A Good Investment?

Few AV Promotions Holdings Limited shareholders would feel satisfied with the return of -88% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for AV Promotions Holdings you should be aware of, and 1 of them is significant.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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