We Discuss Why Hing Yip Holdings Limited's (HKG:132) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

• Hing Yip Holdings will host its Annual General Meeting on 26th of June
• Salary of HK$566.0k is part of CEO Weiqiang Fu's total remuneration
• The total compensation is 48% less than the average for the industry
• Hing Yip Holdings' EPS declined by 44% over the past three years while total shareholder loss over the past three years was 31%

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Performance at Hing Yip Holdings Limited (HKG:132) has not been particularly rosy recently and shareholders will likely be holding CEO Weiqiang Fu and the board accountable for this. At the upcoming AGM on 26th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Hing Yip Holdings

Comparing Hing Yip Holdings Limited's CEO Compensation With The Industry

According to our data, Hing Yip Holdings Limited has a market capitalization of HK$437m, and paid its CEO total annual compensation worth HK$1.3m over the year to December 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$566k.

In comparison with other companies in the Hong Kong Hospitality industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.5m. This suggests that Weiqiang Fu is paid below the industry median.

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. Hing Yip Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Hing Yip Holdings Limited's Growth

Over the last three years, Hing Yip Holdings Limited has shrunk its earnings per share by 44% per year. It saw its revenue drop 2.7% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Hing Yip Holdings Limited Been A Good Investment?

Few Hing Yip Holdings Limited shareholders would feel satisfied with the return of -31% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Hing Yip Holdings (2 make us uncomfortable!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.