It's Probably Less Likely That Zero2IPO Holdings Inc.'s (HKG:1945) CEO Will See A Huge Pay Rise This Year

Key Insights

• Zero2IPO Holdings to hold its Annual General Meeting on 22nd of May
• CEO Gavin Ni's total compensation includes salary of CN¥1.15m
• The overall pay is comparable to the industry average
• Zero2IPO Holdings' EPS grew by 2.9% over the past three years while total shareholder loss over the past three years was 43%

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The underwhelming share price performance of Zero2IPO Holdings Inc. (HKG:1945) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 22nd of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Zero2IPO Holdings

Comparing Zero2IPO Holdings Inc.'s CEO Compensation With The Industry

Our data indicates that Zero2IPO Holdings Inc. has a market capitalization of HK$429m, and total annual CEO compensation was reported as CN¥1.3m for the year to December 2024. That's a notable increase of 14% on last year. In particular, the salary of CN¥1.15m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Capital Markets industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.8m. This suggests that Zero2IPO Holdings remunerates its CEO largely in line with the industry average. What's more, Gavin Ni holds HK$205m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥1.1m	CN¥1.0m	86%
Other	CN¥193k	CN¥168k	14%
Total Compensation	CN¥1.3m	CN¥1.2m	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Our data reveals that Zero2IPO Holdings allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Zero2IPO Holdings Inc.'s Growth

Over the past three years, Zero2IPO Holdings Inc. has seen its earnings per share (EPS) grow by 2.9% per year. It saw its revenue drop 19% over the last year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Zero2IPO Holdings Inc. Been A Good Investment?

The return of -43% over three years would not have pleased Zero2IPO Holdings Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. 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. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Zero2IPO Holdings (1 is a bit unpleasant!) 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.