Shareholders Will Probably Hold Off On Increasing Budweiser Brewing Company APAC Limited's (HKG:1876) CEO Compensation For The Time Being

Key Insights

• Budweiser Brewing Company APAC to hold its Annual General Meeting on 14th of May
• Total pay for CEO Jan Eli B. Craps includes US$1.36m salary
• The overall pay is 1,808% above the industry average
• Budweiser Brewing Company APAC's three-year loss to shareholders was 55% while its EPS grew by 18% over the past three years

Shareholders of Budweiser Brewing Company APAC Limited (HKG:1876) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 14th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Budweiser Brewing Company APAC

Comparing Budweiser Brewing Company APAC Limited's CEO Compensation With The Industry

Our data indicates that Budweiser Brewing Company APAC Limited has a market capitalization of HK$151b, and total annual CEO compensation was reported as US$5.2m for the year to December 2023. Notably, that's an increase of 99% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

In comparison with other companies in the Hong Kong Beverage industry with market capitalizations over HK$63b, the reported median total CEO compensation was US$273k. This suggests that Jan Eli B. Craps is paid more than the median for the industry. What's more, Jan Eli B. Craps holds HK$8.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.4m	US$1.3m	26%
Other	US$3.9m	US$1.3m	74%
Total Compensation	US$5.2m	US$2.6m	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Budweiser Brewing Company APAC sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Budweiser Brewing Company APAC Limited's Growth Numbers

Over the past three years, Budweiser Brewing Company APAC Limited has seen its earnings per share (EPS) grow by 18% per year. In the last year, its revenue is up 5.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Budweiser Brewing Company APAC Limited Been A Good Investment?

The return of -55% over three years would not have pleased Budweiser Brewing Company APAC Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Budweiser Brewing Company APAC that investors should look into moving forward.

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. 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.