Why We Think Victory Securities (Holdings) Company Limited's (HKG:8540) CEO Compensation Is Not Excessive At All

Key Insights

• Victory Securities (Holdings) will host its Annual General Meeting on 5th of June
• Salary of HK$1.52m is part of CEO Kuen Kou's total remuneration
• The overall pay is comparable to the industry average
• Victory Securities (Holdings)'s total shareholder return over the past three years was 58% while its EPS was down 43% over the past three years

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Performance at Victory Securities (Holdings) Company Limited (HKG:8540) has been reasonably good and CEO Kuen Kou has done a decent job of steering the company in the right direction. 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 5th of June. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Victory Securities (Holdings)

How Does Total Compensation For Kuen Kou Compare With Other Companies In The Industry?

Our data indicates that Victory Securities (Holdings) Company Limited has a market capitalization of HK$650m, and total annual CEO compensation was reported as HK$1.8m for the year to December 2024. That's a notable decrease of 23% on last year. In particular, the salary of HK$1.52m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Capital Markets industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.0m. From this we gather that Kuen Kou is paid around the median for CEOs in the industry. What's more, Kuen Kou holds HK$89m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Our data reveals that Victory Securities (Holdings) allocates salary more or less in line with the wider market. 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 Victory Securities (Holdings) Company Limited's Growth Numbers

Victory Securities (Holdings) Company Limited has reduced its earnings per share by 43% a year over the last three years. In the last year, its revenue is up 42%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Victory Securities (Holdings) Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Victory Securities (Holdings) Company Limited for providing a total return of 58% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Victory Securities (Holdings) (2 are potentially serious!) that you should be aware of before investing here.

Important note: Victory Securities (Holdings) is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.