Here's Why Bonny International Holding Limited's (HKG:1906) CEO Compensation Is The Least Of Shareholders Concerns
Key Insights
- Bonny International Holding will host its Annual General Meeting on 29th of May
- CEO Guojun Jin's total compensation includes salary of CN¥605.0k
- The total compensation is 66% less than the average for the industry
- Over the past three years, Bonny International Holding's EPS grew by 7.9% and over the past three years, the total loss to shareholders 3.8%
Shareholders may be wondering what CEO Guojun Jin plans to do to improve the less than great performance at Bonny International Holding Limited (HKG:1906) recently. At the next AGM coming up on 29th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. 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. In our opinion, CEO compensation does not look excessive and we discuss why.
Check out our latest analysis for Bonny International Holding
Comparing Bonny International Holding Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Bonny International Holding Limited has a market capitalization of HK$544m, and reported total annual CEO compensation of CN¥671k for the year to December 2024. Notably, that's a decrease of 8.6% over the year before. We note that the salary portion, which stands at CN¥605.0k constitutes the majority of total compensation received by the CEO.
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 CN¥2.0m. This suggests that Guojun Jin is paid below the industry median. Furthermore, Guojun Jin directly owns HK$293m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥605k | CN¥661k | 90% |
| Other | CN¥66k | CN¥73k | 10% |
| Total Compensation | CN¥671k | CN¥734k | 100% |
On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. There isn't a significant difference between Bonny International Holding and the broader market, in terms of salary allocation in the overall compensation package. 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 Bonny International Holding Limited's Growth Numbers
Bonny International Holding Limited has seen its earnings per share (EPS) increase by 7.9% a year over the past three years. It achieved revenue growth of 50% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Bonny International Holding Limited Been A Good Investment?
With a three year total loss of 3.8% for the shareholders, Bonny International Holding Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It may not be surprising to some that the recent weak performance in the share price may be driven in part by rather flat EPS growth. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Bonny International Holding (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.