Tsingtao Brewery Company Limited's (HKG:168) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Tsingtao Brewery's Annual General Meeting to take place on 20th of May
• CEO Zong Xiang Jiang's total compensation includes salary of CN¥643.7k
• Total compensation is 77% below industry average
• Tsingtao Brewery's three-year loss to shareholders was 0.5% while its EPS grew by 11% over the past three years

Our free stock report includes 2 warning signs investors should be aware of before investing in Tsingtao Brewery. Read for free now.

The performance at Tsingtao Brewery Company Limited (HKG:168) has been rather lacklustre of late and shareholders may be wondering what CEO Zong Xiang Jiang is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Tsingtao Brewery

Comparing Tsingtao Brewery Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Tsingtao Brewery Company Limited has a market capitalization of HK$93b, and reported total annual CEO compensation of CN¥1.0m for the year to December 2024. Notably, that's a decrease of 35% over the year before. We note that the salary portion, which stands at CN¥643.7k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Beverage industry with market capitalizations over HK$62b, the reported median total CEO compensation was CN¥4.4m. This suggests that Zong Xiang Jiang is paid below the industry median. Furthermore, Zong Xiang Jiang directly owns HK$5.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥644k	CN¥632k	63%
Other	CN¥378k	CN¥948k	37%
Total Compensation	CN¥1.0m	CN¥1.6m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Tsingtao Brewery sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Tsingtao Brewery Company Limited's Growth

Over the past three years, Tsingtao Brewery Company Limited has seen its earnings per share (EPS) grow by 11% per year. It saw its revenue drop 2.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Tsingtao Brewery Company Limited Been A Good Investment?

Since shareholders would have lost about 0.5% over three years, some Tsingtao Brewery Company Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The uninspiring share price returns contrasts with the strong EPS growth, suggesting that there may be other factors at play causing it to diverge from fundamentals. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Tsingtao Brewery we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.