This Is Why Town Ray Holdings Limited's (HKG:1692) CEO Compensation Looks Appropriate

Key Insights

• Town Ray Holdings will host its Annual General Meeting on 26th of May
• Salary of HK$1.69m is part of CEO Wai Ming Chan's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Town Ray Holdings' EPS grew by 0.3% and over the past three years, the total shareholder return was 74%

Our free stock report includes 2 warning signs investors should be aware of before investing in Town Ray Holdings. Read for free now.

Performance at Town Ray Holdings Limited (HKG:1692) has been reasonably good and CEO Wai Ming Chan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 26th of May, 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.

Check out our latest analysis for Town Ray Holdings

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

At the time of writing, our data shows that Town Ray Holdings Limited has a market capitalization of HK$915m, and reported total annual CEO compensation of HK$2.0m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$1.69m, represents most of the total compensation being paid.

For comparison, other companies in the Hong Kong Consumer Durables industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.4m. So it looks like Town Ray Holdings compensates Wai Ming Chan in line with the median for the industry. Moreover, Wai Ming Chan also holds HK$13m worth of Town Ray Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$1.7m	HK$1.7m	86%
Other	HK$271k	HK$271k	14%
Total Compensation	HK$2.0m	HK$2.0m	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. Our data reveals that Town Ray Holdings allocates salary more or less in line with the wider market. 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 Town Ray Holdings Limited's Growth Numbers

Earnings per share at Town Ray Holdings Limited are much the same as they were three years ago, albeit with slightly higher. Revenue was pretty flat on last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Town Ray Holdings Limited Been A Good Investment?

We think that the total shareholder return of 74%, over three years, would leave most Town Ray Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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. That's why we did some digging and identified 2 warning signs for Town Ray Holdings that you should be aware of before investing.

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.