Here's Why Shareholders May Want To Be Cautious With Increasing Daphne International Holdings Limited's (HKG:210) CEO Pay Packet

Key Insights

• Daphne International Holdings will host its Annual General Meeting on 21st of May
• Total pay for CEO Chih-Chiao Chang includes CN¥2.94m salary
• Total compensation is 106% above industry average
• Daphne International Holdings' EPS grew by 32% over the past three years while total shareholder return over the past three years was 286%

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Under the guidance of CEO Chih-Chiao Chang, Daphne International Holdings Limited (HKG:210) has performed reasonably well recently. As shareholders go into the upcoming AGM on 21st of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Daphne International Holdings

Comparing Daphne International Holdings Limited's CEO Compensation With The Industry

According to our data, Daphne International Holdings Limited has a market capitalization of HK$930m, and paid its CEO total annual compensation worth CN¥4.1m over the year to December 2024. We note that's an increase of 15% above last year. In particular, the salary of CN¥2.94m, makes up a huge portion of the total compensation being paid to 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. Hence, we can conclude that Chih-Chiao Chang is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥2.9m	CN¥2.8m	71%
Other	CN¥1.2m	CN¥827k	29%
Total Compensation	CN¥4.1m	CN¥3.6m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Daphne International Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Daphne International Holdings Limited's Growth Numbers

Over the past three years, Daphne International Holdings Limited has seen its earnings per share (EPS) grow by 32% per year. It achieved revenue growth of 23% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Daphne International Holdings Limited Been A Good Investment?

We think that the total shareholder return of 286%, over three years, would leave most Daphne International Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

So you may want to check if insiders are buying Daphne International Holdings shares with their own money (free access).

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.