Shareholders Will Probably Not Have Any Issues With Anxian Yuan China Holdings Limited's (HKG:922) CEO Compensation

Key Insights

• Anxian Yuan China Holdings to hold its Annual General Meeting on 8th of September
• CEO Jun Shi's total compensation includes salary of HK$1.32m
• Total compensation is similar to the industry average
• Anxian Yuan China Holdings' total shareholder return over the past three years was 46% while its EPS was down 11% over the past three years

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Anxian Yuan China Holdings Limited (HKG:922) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 8th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for Anxian Yuan China Holdings

Comparing Anxian Yuan China Holdings Limited's CEO Compensation With The Industry

According to our data, Anxian Yuan China Holdings Limited has a market capitalization of HK$360m, and paid its CEO total annual compensation worth HK$1.4m over the year to March 2025. There was no change in the compensation compared to last year. In particular, the salary of HK$1.32m, makes up a huge portion of the total compensation being paid to the CEO.

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 HK$1.8m. This suggests that Anxian Yuan China Holdings remunerates its CEO largely in line with the industry average. What's more, Jun Shi holds HK$4.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Although there is a difference in how total compensation is set, Anxian Yuan China Holdings more or less reflects the market in terms of setting the salary. 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.

A Look at Anxian Yuan China Holdings Limited's Growth Numbers

Over the last three years, Anxian Yuan China Holdings Limited has shrunk its earnings per share by 11% per year. In the last year, its revenue is down 17%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Anxian Yuan China Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Anxian Yuan China Holdings Limited for providing a total return of 46% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Anxian Yuan China Holdings (1 is potentially serious!) that you should be aware of before investing here.

Important note: Anxian Yuan China Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.