Should Shareholders Reconsider China Travel International Investment Hong Kong Limited's (HKG:308) CEO Compensation Package?

Key Insights

• China Travel International Investment Hong Kong's Annual General Meeting to take place on 21st of May
• Total pay for CEO Gang Feng includes HK$711.0k salary
• The overall pay is comparable to the industry average
• China Travel International Investment Hong Kong's three-year loss to shareholders was 23% while its EPS was down 15% over the past three years

We've discovered 2 warning signs about China Travel International Investment Hong Kong. View them for free.

The results at China Travel International Investment Hong Kong Limited (HKG:308) have been quite disappointing recently and CEO Gang Feng bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 21st of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for China Travel International Investment Hong Kong

Comparing China Travel International Investment Hong Kong Limited's CEO Compensation With The Industry

Our data indicates that China Travel International Investment Hong Kong Limited has a market capitalization of HK$5.7b, and total annual CEO compensation was reported as HK$2.1m for the year to December 2024. That's a fairly small increase of 6.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$711k.

On comparing similar companies from the Hong Kong Hospitality industry with market caps ranging from HK$3.1b to HK$12b, we found that the median CEO total compensation was HK$2.1m. From this we gather that Gang Feng is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	HK$711k	HK$711k	33%
Other	HK$1.4m	HK$1.3m	67%
Total Compensation	HK$2.1m	HK$2.0m	100%

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. China Travel International Investment Hong Kong sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

China Travel International Investment Hong Kong Limited's Growth

Over the last three years, China Travel International Investment Hong Kong Limited has shrunk its earnings per share by 15% per year. In the last year, its revenue is up 3.0%.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has China Travel International Investment Hong Kong Limited Been A Good Investment?

Since shareholders would have lost about 23% over three years, some China Travel International Investment Hong Kong Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for China Travel International Investment Hong Kong that investors should be aware of in a dynamic business environment.

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.