We Think Shareholders May Want To Consider A Review Of China Ting Group Holdings Limited's (HKG:3398) CEO Compensation Package

Key Insights

• China Ting Group Holdings' Annual General Meeting to take place on 12th of July
• CEO Hung Yi Ting's total compensation includes salary of HK$1.80m
• Total compensation is similar to the industry average
• Over the past three years, China Ting Group Holdings' EPS fell by 55% and over the past three years, the total loss to shareholders 38%

China Ting Group Holdings Limited (HKG:3398) has not performed well recently and CEO Hung Yi Ting will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 12th of July. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for China Ting Group Holdings

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

According to our data, China Ting Group Holdings Limited has a market capitalization of HK$420m, and paid its CEO total annual compensation worth HK$1.8m over the year to December 2023. That's a notable decrease of 40% on last year. In particular, the salary of HK$1.80m, makes up a huge portion of the total compensation being paid to 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$2.0m. From this we gather that Hung Yi Ting is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	HK$1.8m	HK$3.0m	99%
Other	HK$18k	HK$18k	1%
Total Compensation	HK$1.8m	HK$3.0m	100%

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. China Ting Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

China Ting Group Holdings Limited's Growth

Over the last three years, China Ting Group Holdings Limited has shrunk its earnings per share by 55% per year. It saw its revenue drop 5.4% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 China Ting Group Holdings Limited Been A Good Investment?

With a total shareholder return of -38% over three years, China Ting Group Holdings Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

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, the board will get the chance to explain the steps it plans to take to improve business performance.

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. That's why we did our research, and identified 3 warning signs for China Ting Group Holdings (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.

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