We Think Shareholders May Want To Consider A Review Of Golden Solar New Energy Technology Holdings Limited's (HKG:1121) CEO Compensation Package

Key Insights

• Golden Solar New Energy Technology Holdings' Annual General Meeting to take place on 20th of June
• CEO Shuangquan He's total compensation includes salary of CN¥2.80m
• The total compensation is 359% higher than the average for the industry
• Golden Solar New Energy Technology Holdings' EPS declined by 53% over the past three years while total shareholder loss over the past three years was 76%

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Golden Solar New Energy Technology Holdings Limited (HKG:1121) has not performed well recently and CEO Shuangquan He 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 20th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Golden Solar New Energy Technology Holdings

Comparing Golden Solar New Energy Technology Holdings Limited's CEO Compensation With The Industry

According to our data, Golden Solar New Energy Technology Holdings Limited has a market capitalization of HK$2.8b, and paid its CEO total annual compensation worth CN¥20m over the year to December 2024. That's a slight decrease of 5.6% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥2.8m.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations ranging from HK$1.6b to HK$6.3b, the reported median CEO total compensation was CN¥4.3m. Hence, we can conclude that Shuangquan He is remunerated higher than the industry median.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. It's interesting to note that Golden Solar New Energy Technology Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Golden Solar New Energy Technology Holdings Limited's Growth

Over the last three years, Golden Solar New Energy Technology Holdings Limited has shrunk its earnings per share by 53% per year. In the last year, its revenue is down 14%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. 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 Golden Solar New Energy Technology Holdings Limited Been A Good Investment?

The return of -76% over three years would not have pleased Golden Solar New Energy Technology Holdings Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, 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. That's why we did some digging and identified 2 warning signs for Golden Solar New Energy Technology Holdings that you should be aware of before investing.

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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.