Here's Why We Think B & S International Holdings Ltd.'s (HKG:1705) CEO Compensation Looks Fair

Key Insights

• B & S International Holdings' Annual General Meeting to take place on 12th of September
• Salary of HK$972.0k is part of CEO Andrew Chan's total remuneration
• Total compensation is 63% below industry average
• B & S International Holdings' three-year loss to shareholders was 16% while its EPS grew by 286% over the past three years

The performance at B & S International Holdings Ltd. (HKG:1705) has been rather lacklustre of late and shareholders may be wondering what CEO Andrew Chan is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 12th of September. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for B & S International Holdings

Comparing B & S International Holdings Ltd.'s CEO Compensation With The Industry

According to our data, B & S International Holdings Ltd. has a market capitalization of HK$152m, and paid its CEO total annual compensation worth HK$990k over the year to March 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is HK$972.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Consumer Retailing industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.7m. This suggests that Andrew Chan is paid below the industry median. What's more, Andrew Chan holds HK$38m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	HK$972k	HK$950k	98%
Other	HK$18k	HK$18k	2%
Total Compensation	HK$990k	HK$968k	100%

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. B & S International 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.

A Look at B & S International Holdings Ltd.'s Growth Numbers

B & S International Holdings Ltd. has seen its earnings per share (EPS) increase by 286% a year over the past three years. In the last year, its revenue is up 7.0%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has B & S International Holdings Ltd. Been A Good Investment?

Given the total shareholder loss of 16% over three years, many shareholders in B & S International Holdings Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

B & S International Holdings pays its CEO a majority of compensation through a salary. The fact that shareholders have earned a negative share price return is certainly disconcerting. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for B & S International Holdings that you should be aware of before investing.

Important note: B & S 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.