Increases to CEO Compensation Might Be Put On Hold For Now at Future Bright Holdings Limited (HKG:703)

Key Insights

• Future Bright Holdings will host its Annual General Meeting on 9th of June
• CEO Chak Mo Chan's total compensation includes salary of HK$495.0k
• The overall pay is 191% above the industry average
• Future Bright Holdings' EPS grew by 95% over the past three years while total shareholder return over the past three years was 2.6%

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Performance at Future Bright Holdings Limited (HKG:703) has been reasonably good and CEO Chak Mo Chan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 9th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Future Bright Holdings

How Does Total Compensation For Chak Mo Chan Compare With Other Companies In The Industry?

According to our data, Future Bright Holdings Limited has a market capitalization of HK$108m, and paid its CEO total annual compensation worth HK$7.0m over the year to December 2024. We note that's an increase of 19% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$495k.

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$2.4m. Hence, we can conclude that Chak Mo Chan is remunerated higher than the industry median. What's more, Chak Mo Chan holds HK$44m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. It's interesting to note that Future Bright Holdings 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.

A Look at Future Bright Holdings Limited's Growth Numbers

Over the past three years, Future Bright Holdings Limited has seen its earnings per share (EPS) grow by 95% per year. In the last year, its revenue is down 2.3%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Future Bright Holdings Limited Been A Good Investment?

Future Bright Holdings Limited has not done too badly by shareholders, with a total return of 2.6%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Future Bright Holdings (1 can't be ignored!) that you should be aware of before investing here.

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.