Shareholders May Be Wary Of Increasing China Ting Group Holdings Limited's (HKG:3398) CEO Compensation Package

Key Insights

• China Ting Group Holdings' Annual General Meeting to take place on 27th of May
• CEO Hung Yi Ting's total compensation includes salary of HK$3.00m
• The total compensation is 39% higher than the average for the industry
• China Ting Group Holdings' three-year loss to shareholders was 66% while its EPS was down 21% over the past three years

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The results at China Ting Group Holdings Limited (HKG:3398) have been quite disappointing recently and CEO Hung Yi Ting bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 27th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for China Ting Group Holdings

Comparing China Ting Group Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that China Ting Group Holdings Limited has a market capitalization of HK$233m, and reported total annual CEO compensation of HK$3.0m for the year to December 2024. We note that's an increase of 66% above last year. We note that the salary portion, which stands at HK$3.00m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Luxury industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.2m. Hence, we can conclude that Hung Yi Ting is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. China Ting Group Holdings has gone down a largely traditional route, paying Hung Yi Ting a high salary, giving it preference over non-salary benefits. 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.

China Ting Group Holdings Limited's Growth

China Ting Group Holdings Limited has reduced its earnings per share by 21% a year over the last three years. It saw its revenue drop 3.5% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China Ting Group Holdings Limited Been A Good Investment?

Few China Ting Group Holdings Limited shareholders would feel satisfied with the return of -66% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Hung Yi receives almost all of their compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for China Ting Group Holdings (2 are a bit unpleasant!) that you should be aware of before investing here.

Switching gears from China Ting Group 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.