Here's Why We Think Top Education Group Ltd's (HKG:1752) CEO Compensation Looks Fair for the time being

Key Insights

• Top Education Group to hold its Annual General Meeting on 27th of November
• Total pay for CEO Cathy Xu includes AU$345.0k salary
• Total compensation is similar to the industry average
• Top Education Group's total shareholder return over the past three years was 27% while its EPS grew by 84% over the past three years

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Under the guidance of CEO Cathy Xu, Top Education Group Ltd (HKG:1752) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of November. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Top Education Group

Comparing Top Education Group Ltd's CEO Compensation With The Industry

According to our data, Top Education Group Ltd has a market capitalization of HK$181m, and paid its CEO total annual compensation worth AU$482k over the year to June 2025. That's a notable decrease of 9.2% on last year. Notably, the salary which is AU$345.0k, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Consumer Services industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was AU$386k. So it looks like Top Education Group compensates Cathy Xu in line with the median for the industry. Moreover, Cathy Xu also holds HK$510k worth of Top Education Group stock directly under their own name.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Top Education Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Top Education Group Ltd's Growth Numbers

Top Education Group Ltd's earnings per share (EPS) grew 84% per year over the last three years. Its revenue is up 18% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Top Education Group Ltd Been A Good Investment?

With a total shareholder return of 27% over three years, Top Education Group Ltd shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Top Education Group (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.