Here's Why Baiying Holdings Group Limited's (HKG:8525) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Baiying Holdings Group to hold its Annual General Meeting on 27th of June
• Salary of CN¥668.2k is part of CEO Dake Huang's total remuneration
• The total compensation is 46% less than the average for the industry
• Baiying Holdings Group's EPS declined by 83% over the past three years while total shareholder loss over the past three years was 1.1%

Shareholders may be wondering what CEO Dake Huang plans to do to improve the less than great performance at Baiying Holdings Group Limited (HKG:8525) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 27th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Baiying Holdings Group

Comparing Baiying Holdings Group Limited's CEO Compensation With The Industry

According to our data, Baiying Holdings Group Limited has a market capitalization of HK$124m, and paid its CEO total annual compensation worth CN¥763k over the year to December 2023. That's a modest increase of 5.0% on the prior year. We note that the salary portion, which stands at CN¥668.2k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Diversified Financial industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.4m. That is to say, Dake Huang is paid under the industry median. Moreover, Dake Huang also holds HK$5.7m worth of Baiying Holdings Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. Baiying Holdings Group pays out 88% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Baiying Holdings Group Limited's Growth Numbers

Baiying Holdings Group Limited has reduced its earnings per share by 83% a year over the last three years. In the last year, its revenue is up 42%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Baiying Holdings Group Limited Been A Good Investment?

With a three year total loss of 1.1% for the shareholders, Baiying Holdings Group Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders will be disappointed with the share price performance as they go into the AGM. This may have to do with the lack of earnings growth at the company, which may explain the lacklustre returns. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Baiying Holdings 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.

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