It's Probably Less Likely That Emperor Capital Group Limited's (HKG:717) CEO Will See A Huge Pay Rise This Year

Key Insights

• Emperor Capital Group will host its Annual General Meeting on 27th of February
• CEO Daisy Yeung's total compensation includes salary of HK$2.40m
• The total compensation is similar to the average for the industry
• Emperor Capital Group's three-year loss to shareholders was 9.9% while its EPS grew by 73% over the past three years

In the past three years, the share price of Emperor Capital Group Limited (HKG:717) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of February. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Emperor Capital Group

How Does Total Compensation For Daisy Yeung Compare With Other Companies In The Industry?

At the time of writing, our data shows that Emperor Capital Group Limited has a market capitalization of HK$431m, and reported total annual CEO compensation of HK$2.7m for the year to September 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$2.40m, represents most of the total compensation being paid.

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 HK$2.2m. So it looks like Emperor Capital Group compensates Daisy Yeung in line with the median for the industry. Moreover, Daisy Yeung also holds HK$1.2m worth of Emperor Capital Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$2.4m	HK$2.4m	89%
Other	HK$310k	HK$310k	11%
Total Compensation	HK$2.7m	HK$2.7m	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. Emperor Capital Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Emperor Capital Group Limited's Growth

Over the past three years, Emperor Capital Group Limited has seen its earnings per share (EPS) grow by 73% per year. Its revenue is up 66% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Emperor Capital Group Limited Been A Good Investment?

Given the total shareholder loss of 9.9% over three years, many shareholders in Emperor Capital Group Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 1 warning sign for Emperor Capital Group that investors should look into moving forward.

Switching gears from Emperor Capital Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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

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.