CA Cultural Technology Group Limited's (HKG:1566) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• CA Cultural Technology Group to hold its Annual General Meeting on 28th of August
• Salary of HK$744.0k is part of CEO Jason Chong's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, CA Cultural Technology Group's EPS fell by 27% and over the past three years, the total loss to shareholders 98%

Shareholders will probably not be too impressed with the underwhelming results at CA Cultural Technology Group Limited (HKG:1566) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for CA Cultural Technology Group

How Does Total Compensation For Jason Chong Compare With Other Companies In The Industry?

Our data indicates that CA Cultural Technology Group Limited has a market capitalization of HK$57m, and total annual CEO compensation was reported as HK$2.0m for the year to March 2024. There was no change in the compensation compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$744k.

For comparison, other companies in the Hong Kong Hospitality industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.0m. So it looks like CA Cultural Technology Group compensates Jason Chong in line with the median for the industry. Moreover, Jason Chong also holds HK$7.8m worth of CA Cultural Technology Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$744k	HK$744k	38%
Other	HK$1.2m	HK$1.2m	62%
Total Compensation	HK$2.0m	HK$2.0m	100%

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. It's interesting to note that CA Cultural Technology Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

CA Cultural Technology Group Limited's Growth

Over the last three years, CA Cultural Technology Group Limited has shrunk its earnings per share by 27% per year. In the last year, its revenue is up 1.0%.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CA Cultural Technology Group Limited Been A Good Investment?

Few CA Cultural Technology Group Limited shareholders would feel satisfied with the return of -98% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 3 which shouldn't be ignored) in CA Cultural Technology Group we think you should know about.

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.