Shareholders Will Probably Hold Off On Increasing Bosideng International Holdings Limited's (HKG:3998) CEO Compensation For The Time Being

Key Insights

• Bosideng International Holdings will host its Annual General Meeting on 20th of August
• CEO Dekang Gao's total compensation includes salary of CN¥11.6m
• The overall pay is 93% above the industry average
• Over the past three years, Bosideng International Holdings' EPS grew by 17% and over the past three years, the total shareholder return was 21%

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Performance at Bosideng International Holdings Limited (HKG:3998) has been reasonably good and CEO Dekang Gao has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 20th of August, 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.

Check out our latest analysis for Bosideng International Holdings

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

According to our data, Bosideng International Holdings Limited has a market capitalization of HK$53b, and paid its CEO total annual compensation worth CN¥12m over the year to March 2025. Notably, that's an increase of 61% over the year before. Notably, the salary which is CN¥11.6m, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Luxury industry with market capitalizations between HK$31b and HK$94b, we discovered that the median CEO total compensation of that group was CN¥6.2m. Accordingly, our analysis reveals that Bosideng International Holdings Limited pays Dekang Gao north of the industry median. Moreover, Dekang Gao also holds HK$1.2b worth of Bosideng International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Bosideng International Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bosideng International Holdings Limited's Growth Numbers

Bosideng International Holdings Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. Its revenue is up 12% 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bosideng International Holdings Limited Been A Good Investment?

With a total shareholder return of 21% over three years, Bosideng International Holdings Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Dekang receives almost all of their compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Bosideng International Holdings that you should be aware of before investing.

Important note: Bosideng International Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.