It May Be Possible That Uni-President China Holdings Ltd's (HKG:220) CEO Compensation Could Get Bumped Up

Key Insights

• Uni-President China Holdings will host its Annual General Meeting on 6th of June
• Total pay for CEO Xinhua Liu includes CN¥1.34m salary
• Total compensation is 41% below industry average
• Uni-President China Holdings' total shareholder return over the past three years was 86% while its EPS grew by 7.2% over the past three years

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Shareholders will probably not be disappointed by the robust results at Uni-President China Holdings Ltd (HKG:220) recently and they will be keeping this in mind as they go into the AGM on 6th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for Uni-President China Holdings

Comparing Uni-President China Holdings Ltd's CEO Compensation With The Industry

At the time of writing, our data shows that Uni-President China Holdings Ltd has a market capitalization of HK$44b, and reported total annual CEO compensation of CN¥4.3m for the year to December 2024. That's a fairly small increase of 7.8% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥1.3m.

For comparison, other companies in the Hong Kong Food industry with market capitalizations ranging between HK$31b and HK$94b had a median total CEO compensation of CN¥7.2m. This suggests that Xinhua Liu is paid below the industry median. What's more, Xinhua Liu holds HK$3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Uni-President China Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Uni-President China Holdings Ltd's Growth Numbers

Uni-President China Holdings Ltd has seen its earnings per share (EPS) increase by 7.2% a year over the past three years. Its revenue is up 6.1% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Uni-President China Holdings Ltd Been A Good Investment?

We think that the total shareholder return of 86%, over three years, would leave most Uni-President China Holdings Ltd shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 Uni-President China Holdings that investors should look into moving forward.

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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.