We Think The Compensation For KNT Holdings Limited's (HKG:1025) CEO Looks About Right

Key Insights

• KNT Holdings' Annual General Meeting to take place on 26th of August
• Total pay for CEO Sik Chong includes HK$782.0k salary
• Total compensation is 58% below industry average
• KNT Holdings' EPS grew by 35% over the past three years while total shareholder loss over the past three years was 78%

Shareholders may be wondering what CEO Sik Chong plans to do to improve the less than great performance at KNT Holdings Limited (HKG:1025) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 26th of August. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for KNT Holdings

How Does Total Compensation For Sik Chong Compare With Other Companies In The Industry?

Our data indicates that KNT Holdings Limited has a market capitalization of HK$43m, and total annual CEO compensation was reported as HK$800k for the year to March 2024. Notably, that's a decrease of 66% over the year before. Notably, the salary which is HK$782.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Luxury industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. Accordingly, KNT Holdings pays its CEO under the industry median. Furthermore, Sik Chong directly owns HK$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$782k	HK$2.3m	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$800k	HK$2.4m	100%

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. Investors will find it interesting that KNT Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

KNT Holdings Limited's Growth

KNT Holdings Limited has seen its earnings per share (EPS) increase by 35% a year over the past three years. It saw its revenue drop 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has KNT Holdings Limited Been A Good Investment?

Few KNT Holdings Limited shareholders would feel satisfied with the return of -78% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Sik receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key focus for the board and management will be how to align the share price with fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for KNT Holdings that you should be aware of before investing.

Switching gears from KNT Holdings, 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.