Shareholders Will Likely Find Bar Pacific Group Holdings Limited's (HKG:8432) CEO Compensation Acceptable

Performance at Bar Pacific Group Holdings Limited (HKG:8432) has been rather uninspiring recently and shareholders may be wondering how CEO Eva Tse plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 19 October 2022. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Bar Pacific Group Holdings

Comparing Bar Pacific Group Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Bar Pacific Group Holdings Limited has a market capitalization of HK$67m, and reported total annual CEO compensation of HK$742k for the year to March 2022. We note that's a small decrease of 7.5% on last year. Notably, the salary which is HK$724.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. In other words, Bar Pacific Group Holdings pays its CEO lower than the industry median. Furthermore, Eva Tse directly owns HK$34m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	HK$724k	HK$724k	98%
Other	HK$18k	HK$78k	2%
Total Compensation	HK$742k	HK$802k	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Bar Pacific Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Bar Pacific Group Holdings Limited's Growth

Over the last three years, Bar Pacific Group Holdings Limited has shrunk its earnings per share by 79% per year. Its revenue is up 169% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bar Pacific Group Holdings Limited Been A Good Investment?

With a three year total loss of 12% for the shareholders, Bar Pacific Group Holdings Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Bar Pacific Group Holdings pays its CEO a majority of compensation through a salary. The lack of share price growth will be weighing on shareholders' minds as they go into the AGM. This may have to do with the lack of earnings growth at the company, which may explain the lacklustre returns. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Bar Pacific Group Holdings that investors should look into moving forward.

Switching gears from Bar Pacific Group Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.