It's Unlikely That CEC International Holdings Limited's (HKG:759) CEO Will See A Huge Pay Rise This Year

CEO Fung Kwan Tang has done a decent job of delivering relatively good performance at CEC International Holdings Limited (HKG:759) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for CEC International Holdings

How Does Total Compensation For Fung Kwan Tang Compare With Other Companies In The Industry?

At the time of writing, our data shows that CEC International Holdings Limited has a market capitalization of HK$320m, and reported total annual CEO compensation of HK$6.5m for the year to April 2022. That's a notable increase of 72% on last year. Notably, the salary which is HK$4.82m, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.1m. Accordingly, our analysis reveals that CEC International Holdings Limited pays Fung Kwan Tang north of the industry median. Moreover, Fung Kwan Tang also holds HK$2.0m worth of CEC International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	HK$4.8m	HK$3.4m	74%
Other	HK$1.7m	HK$330k	26%
Total Compensation	HK$6.5m	HK$3.8m	100%

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. CEC International Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

CEC International Holdings Limited's Growth

CEC International Holdings Limited has seen its earnings per share (EPS) increase by 83% a year over the past three years. Its revenue is down 4.5% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CEC International Holdings Limited Been A Good Investment?

CEC International Holdings Limited has served shareholders reasonably well, with a total return of 17% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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. We did our research and spotted 1 warning sign for CEC International Holdings that investors should look into moving forward.

Switching gears from CEC International 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.