We Think Shareholders May Want To Consider A Review Of True Partner Capital Holding Limited's (HKG:8657) CEO Compensation Package

Key Insights

• True Partner Capital Holding will host its Annual General Meeting on 13th of May
• Salary of HK$4.20m is part of CEO Ralph Paul Johan van Put's total remuneration
• Total compensation is 93% above industry average
• True Partner Capital Holding's EPS declined by 30% over the past three years while total shareholder loss over the past three years was 53%

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True Partner Capital Holding Limited (HKG:8657) has not performed well recently and CEO Ralph Paul Johan van Put will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 13th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for True Partner Capital Holding

How Does Total Compensation For Ralph Paul Johan van Put Compare With Other Companies In The Industry?

Our data indicates that True Partner Capital Holding Limited has a market capitalization of HK$168m, and total annual CEO compensation was reported as HK$4.2m for the year to December 2024. That's a notable decrease of 20% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth HK$4.2m.

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$2.2m. Accordingly, our analysis reveals that True Partner Capital Holding Limited pays Ralph Paul Johan van Put north of the industry median. Furthermore, Ralph Paul Johan van Put directly owns HK$23m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	HK$4.2m	HK$5.3m	100%
Other	-	-	-
Total Compensation	HK$4.2m	HK$5.3m	100%

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. On a company level, True Partner Capital Holding prefers to reward its CEO through a salary, opting not to pay Ralph Paul Johan van Put through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at True Partner Capital Holding Limited's Growth Numbers

True Partner Capital Holding Limited has reduced its earnings per share by 30% a year over the last three years. Its revenue is down 25% over the previous year.

Overall this is not a very positive result for shareholders. 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 True Partner Capital Holding Limited Been A Good Investment?

The return of -53% over three years would not have pleased True Partner Capital Holding Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

True Partner Capital Holding rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for True Partner Capital Holding (1 is a bit concerning!) that you should be aware of before investing here.

Important note: True Partner Capital Holding 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.