It's Unlikely That Hatcher Group Limited's (HKG:8365) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Ringo Hui, Hatcher Group Limited (HKG:8365) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10 February 2023. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Hatcher Group

Comparing Hatcher Group Limited's CEO Compensation With The Industry

Our data indicates that Hatcher Group Limited has a market capitalization of HK$677m, and total annual CEO compensation was reported as HK$2.5m for the year to September 2022. Notably, that's an increase of 25% over the year before. Notably, the salary which is HK$2.52m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Capital Markets industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. Accordingly, our analysis reveals that Hatcher Group Limited pays Ringo Hui north of the industry median. What's more, Ringo Hui holds HK$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	HK$2.5m	HK$2.0m	99%
Other	HK$20k	HK$18k	1%
Total Compensation	HK$2.5m	HK$2.0m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Hatcher Group has gone down a largely traditional route, paying Ringo Hui a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Hatcher Group Limited's Growth

Over the past three years, Hatcher Group Limited has seen its earnings per share (EPS) grow by 41% per year. It achieved revenue growth of 123% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Hatcher Group Limited Been A Good Investment?

Most shareholders would probably be pleased with Hatcher Group Limited for providing a total return of 193% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Ringo receives almost all of their compensation through a salary. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Hatcher Group (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.