Here's Why Some Shareholders May Not Be Too Generous With JTF International Holdings Limited's (HKG:8479) CEO Compensation This Year

The disappointing performance at JTF International Holdings Limited (HKG:8479) will make some shareholders rather disheartened. The next AGM coming up on 27 May 2021 will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for JTF International Holdings

Comparing JTF International Holdings Limited's CEO Compensation With the industry

According to our data, JTF International Holdings Limited has a market capitalization of HK$530m, and paid its CEO total annual compensation worth CN¥423k over the year to December 2020. That's a notable decrease of 57% on last year. In particular, the salary of CN¥409.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.1m. Accordingly, JTF International Holdings pays its CEO under the industry median.

Component	2020	2019	Proportion (2020)
Salary	CN¥409k	CN¥962k	97%
Other	CN¥14k	CN¥28k	3%
Total Compensation	CN¥423k	CN¥990k	100%

Talking in terms of the industry, salary represented approximately 90% of total compensation out of all the companies we analyzed, while other remuneration made up 10% of the pie. JTF International Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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 JTF International Holdings Limited's Growth Numbers

JTF International Holdings Limited has reduced its earnings per share by 25% a year over the last three years. It saw its revenue drop 49% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has JTF International Holdings Limited Been A Good Investment?

With a three year total loss of 28% for the shareholders, JTF International Holdings Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Sizhen receives almost all of their compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for JTF International 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.

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This article by Simply Wall St is general in nature. 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.
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