Some Shareholders May Object To A Pay Rise For Kader Holdings Company Limited's (HKG:180) CEO This Year

Key Insights

• Kader Holdings will host its Annual General Meeting on 20th of June
• Total pay for CEO Kenneth Ting includes HK$600.0k salary
• The total compensation is 57% less than the average for the industry
• Kader Holdings' EPS declined by 23% over the past three years while total shareholder loss over the past three years was 20%

The disappointing performance at Kader Holdings Company Limited (HKG:180) will make some shareholders rather disheartened. At the upcoming AGM on 20th of June, 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.

Check out our latest analysis for Kader Holdings

How Does Total Compensation For Kenneth Ting Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kader Holdings Company Limited has a market capitalization of HK$314m, and reported total annual CEO compensation of HK$760k for the year to December 2023. We note that's a small decrease of 6.2% on last year. We note that the salary portion, which stands at HK$600.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Leisure industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. That is to say, Kenneth Ting is paid under the industry median. Furthermore, Kenneth Ting directly owns HK$95m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	HK$600k	HK$600k	79%
Other	HK$160k	HK$210k	21%
Total Compensation	HK$760k	HK$810k	100%

On an industry level, around 92% of total compensation represents salary and 8% is other remuneration. In Kader Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Kader Holdings Company Limited's Growth Numbers

Over the last three years, Kader Holdings Company Limited has shrunk its earnings per share by 23% per year. It achieved revenue growth of 8.7% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Kader Holdings Company Limited Been A Good Investment?

Since shareholders would have lost about 20% over three years, some Kader Holdings Company Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Kader Holdings you should be aware of, and 2 of them make us uncomfortable.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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

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.