It's Probably Less Likely That Century Entertainment International Holdings Limited's (HKG:959) CEO Will See A Huge Pay Rise This Year

Shareholders of Century Entertainment International Holdings Limited (HKG:959) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 15 September 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Century Entertainment International Holdings

How Does Total Compensation For Ng Wai Ng Compare With Other Companies In The Industry?

At the time of writing, our data shows that Century Entertainment International Holdings Limited has a market capitalization of HK$54m, and reported total annual CEO compensation of HK$1.6m for the year to March 2021. That's a slight decrease of 4.5% on the prior year. Notably, the salary of HK$1.6m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.8m. So it looks like Century Entertainment International Holdings compensates Ng Wai Ng in line with the median for the industry. Moreover, Ng Wai Ng also holds HK$15m worth of Century Entertainment International Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	HK$1.6m	HK$1.7m	100%
Other	-	-	-
Total Compensation	HK$1.6m	HK$1.7m	100%

On an industry level, roughly 90% of total compensation represents salary and 10% is other remuneration. On a company level, Century Entertainment International Holdings prefers to reward its CEO through a salary, opting not to pay Ng Wai Ng through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Century Entertainment International Holdings Limited's Growth

Over the past three years, Century Entertainment International Holdings Limited has seen its earnings per share (EPS) grow by 32% per year. Its revenue is down 98% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Century Entertainment International Holdings Limited Been A Good Investment?

With a total shareholder return of -82% over three years, Century Entertainment International Holdings Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Century Entertainment International Holdings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 4 warning signs for Century Entertainment International Holdings that investors should look into moving forward.

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.

If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.