Dingyi Group Investment Limited's (HKG:508) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Dingyi Group Investment to hold its Annual General Meeting on 26th of September
• Salary of HK$670.0k is part of CEO Xiaonong Su's total remuneration
• Total compensation is 61% below industry average
• Over the past three years, Dingyi Group Investment's EPS fell by 7.0% and over the past three years, the total loss to shareholders 47%

The disappointing performance at Dingyi Group Investment Limited (HKG:508) will make some shareholders rather disheartened. The next AGM coming up on 26th of September will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Dingyi Group Investment

Comparing Dingyi Group Investment Limited's CEO Compensation With The Industry

According to our data, Dingyi Group Investment Limited has a market capitalization of HK$451m, and paid its CEO total annual compensation worth HK$721k over the year to March 2024. That's just a smallish increase of 4.3% on last year. In particular, the salary of HK$670.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Diversified Financial industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. That is to say, Xiaonong Su is paid under the industry median. Furthermore, Xiaonong Su directly owns HK$777k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$670k	HK$640k	93%
Other	HK$51k	HK$51k	7%
Total Compensation	HK$721k	HK$691k	100%

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. According to our research, Dingyi Group Investment has allocated a higher percentage of pay to salary in comparison to the wider industry. 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 Dingyi Group Investment Limited's Growth Numbers

Over the last three years, Dingyi Group Investment Limited has shrunk its earnings per share by 7.0% per year. In the last year, its revenue is down 29%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Dingyi Group Investment Limited Been A Good Investment?

Few Dingyi Group Investment Limited shareholders would feel satisfied with the return of -47% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 4 warning signs for Dingyi Group Investment that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.