This Is The Reason Why We Think Ban Loong Holdings Limited's (HKG:30) CEO Deserves A Bump Up To Their Compensation

The impressive results at Ban Loong Holdings Limited (HKG:30) recently will be great news for shareholders. At the upcoming AGM on 30 September 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Ban Loong Holdings

How Does Total Compensation For Wang Chow Compare With Other Companies In The Industry?

According to our data, Ban Loong Holdings Limited has a market capitalization of HK$1.8b, and paid its CEO total annual compensation worth HK$1.4m over the year to March 2021. That's a slight decrease of 3.4% on the prior year. We note that the salary portion, which stands at HK$1.27m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from HK$779m to HK$3.1b, we found that the median CEO total compensation was HK$2.5m. That is to say, Wang Chow is paid under the industry median. What's more, Wang Chow holds HK$141m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	HK$1.3m	HK$1.3m	91%
Other	HK$124k	HK$124k	9%
Total Compensation	HK$1.4m	HK$1.4m	100%

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. There isn't a significant difference between Ban Loong Holdings and the broader market, in terms of salary allocation in the overall compensation package. 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.

Ban Loong Holdings Limited's Growth

Ban Loong Holdings Limited has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is up 4.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Ban Loong Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Ban Loong Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Ban Loong Holdings (1 can't be ignored!) that you should be aware of before investing here.

Important note: Ban Loong 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.
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