Most Shareholders Will Probably Agree With Dalipal Holdings Limited's (HKG:1921) CEO Compensation

Key Insights

• Dalipal Holdings to hold its Annual General Meeting on 23rd of May
• CEO Hongyao Zhang's total compensation includes salary of CN¥2.37m
• The overall pay is comparable to the industry average
• Over the past three years, Dalipal Holdings' EPS fell by 44% and over the past three years, the total shareholder return was 245%

Our free stock report includes 1 warning sign investors should be aware of before investing in Dalipal Holdings. Read for free now.

Despite strong share price growth of 245% for Dalipal Holdings Limited (HKG:1921) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 23rd of May. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for Dalipal Holdings

Comparing Dalipal Holdings Limited's CEO Compensation With The Industry

Our data indicates that Dalipal Holdings Limited has a market capitalization of HK$11b, and total annual CEO compensation was reported as CN¥2.7m for the year to December 2024. That's a notable increase of 19% on last year. In particular, the salary of CN¥2.37m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Hong Kong Energy Services industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was CN¥2.2m. From this we gather that Hongyao Zhang is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	CN¥2.4m	CN¥1.9m	86%
Other	CN¥371k	CN¥408k	14%
Total Compensation	CN¥2.7m	CN¥2.3m	100%

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Dalipal Holdings pays out 86% 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.

Dalipal Holdings Limited's Growth

Dalipal Holdings Limited has reduced its earnings per share by 44% a year over the last three years. Its revenue is down 14% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dalipal Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 245% over three years, Dalipal Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Dalipal Holdings that investors should think about before committing capital to this stock.

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.

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.