Here's Why Genertec Universal Medical Group Company Limited's (HKG:2666) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Genertec Universal Medical Group will host its Annual General Meeting on 28th of May
• Salary of CN¥1.09m is part of CEO Wang Wenbing's total remuneration
• The overall pay is comparable to the industry average
• Genertec Universal Medical Group's total shareholder return over the past three years was 39% while its EPS grew by 2.9% over the past three years

We've discovered 2 warning signs about Genertec Universal Medical Group. View them for free.

CEO Wang Wenbing has done a decent job of delivering relatively good performance at Genertec Universal Medical Group Company Limited (HKG:2666) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of May. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for Genertec Universal Medical Group

Comparing Genertec Universal Medical Group Company Limited's CEO Compensation With The Industry

Our data indicates that Genertec Universal Medical Group Company Limited has a market capitalization of HK$10b, and total annual CEO compensation was reported as CN¥2.4m for the year to December 2024. Notably, that's a decrease of 46% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥1.1m.

On examining similar-sized companies in the Hong Kong Diversified Financial industry with market capitalizations between HK$7.8b and HK$25b, we discovered that the median CEO total compensation of that group was CN¥2.3m. This suggests that Genertec Universal Medical Group remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	CN¥1.1m	CN¥1.4m	45%
Other	CN¥1.3m	CN¥3.0m	55%
Total Compensation	CN¥2.4m	CN¥4.5m	100%

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. Genertec Universal Medical Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Genertec Universal Medical Group Company Limited's Growth Numbers

Genertec Universal Medical Group Company Limited has seen its earnings per share (EPS) increase by 2.9% a year over the past three years. Revenue was pretty flat on last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Genertec Universal Medical Group Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Genertec Universal Medical Group Company Limited for providing a total return of 39% 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.

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Genertec Universal Medical Group we think you should know about.

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.