Here's Why Tsui Wah Holdings Limited's (HKG:1314) CEO May Deserve A Raise

Key Insights

• Tsui Wah Holdings to hold its Annual General Meeting on 13th of August
• CEO Kenji Lee's total compensation includes salary of HK$876.0k
• Total compensation is 55% below industry average
• Tsui Wah Holdings' EPS grew by 85% over the past three years while total shareholder return over the past three years was 41%

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The solid performance at Tsui Wah Holdings Limited (HKG:1314) has been impressive and shareholders will probably be pleased to know that CEO Kenji Lee has delivered. This would be kept in mind at the upcoming AGM on 13th of August which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Tsui Wah Holdings

Comparing Tsui Wah Holdings Limited's CEO Compensation With The Industry

According to our data, Tsui Wah Holdings Limited has a market capitalization of HK$277m, and paid its CEO total annual compensation worth HK$1.1m over the year to March 2025. We note that's an increase of 100% above last year. Notably, the salary which is HK$876.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Hospitality industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.5m. In other words, Tsui Wah Holdings pays its CEO lower than the industry median.

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. Tsui Wah Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Tsui Wah Holdings Limited's Growth Numbers

Tsui Wah Holdings Limited has seen its earnings per share (EPS) increase by 85% a year over the past three years. Its revenue is down 5.0% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Tsui Wah Holdings Limited Been A Good Investment?

We think that the total shareholder return of 41%, over three years, would leave most Tsui Wah Holdings Limited shareholders smiling. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Tsui Wah Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Tsui Wah 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.