Most Shareholders Will Probably Agree With Town Ray Holdings Limited's (HKG:1692) CEO Compensation

Key Insights

• Town Ray Holdings will host its Annual General Meeting on 21st of June
• Salary of HK$1.93m is part of CEO Wai Ming Chan's total remuneration
• Total compensation is similar to the industry average
• Town Ray Holdings' total shareholder return over the past three years was 73% while its EPS grew by 7.3% over the past three years

CEO Wai Ming Chan has done a decent job of delivering relatively good performance at Town Ray Holdings Limited (HKG:1692) recently. As shareholders go into the upcoming AGM on 21st of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Town Ray Holdings

How Does Total Compensation For Wai Ming Chan Compare With Other Companies In The Industry?

According to our data, Town Ray Holdings Limited has a market capitalization of HK$919m, and paid its CEO total annual compensation worth HK$2.0m over the year to December 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$1.93m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Consumer Durables industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.3m. This suggests that Town Ray Holdings remunerates its CEO largely in line with the industry average. What's more, Wai Ming Chan holds HK$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	HK$1.9m	HK$1.9m	99%
Other	HK$24k	HK$24k	1%
Total Compensation	HK$2.0m	HK$1.9m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Town Ray Holdings has gone down a largely traditional route, paying Wai Ming Chan 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 Town Ray Holdings Limited's Growth Numbers

Town Ray Holdings Limited has seen its earnings per share (EPS) increase by 7.3% a year over the past three years. It saw its revenue drop 14% over the last year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Town Ray Holdings Limited Been A Good Investment?

We think that the total shareholder return of 73%, over three years, would leave most Town Ray Holdings Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Wai Ming receives almost all of their compensation through a salary. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Town Ray Holdings that investors should look into moving forward.

Switching gears from Town Ray 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com