This Is Why China Starch Holdings Limited's (HKG:3838) CEO Compensation Looks Appropriate

Key Insights

• China Starch Holdings' Annual General Meeting to take place on 20th of May
• CEO Shijun Gao's total compensation includes salary of CN¥450.0k
• The total compensation is 65% less than the average for the industry
• China Starch Holdings' EPS grew by 12% over the past three years while total shareholder loss over the past three years was 6.8%

We've discovered 1 warning sign about China Starch Holdings. View them for free.

Shareholders may be wondering what CEO Shijun Gao plans to do to improve the less than great performance at China Starch Holdings Limited (HKG:3838) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM 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. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for China Starch Holdings

Comparing China Starch Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that China Starch Holdings Limited has a market capitalization of HK$1.1b, and reported total annual CEO compensation of CN¥551k for the year to December 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of CN¥450.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.6m. In other words, China Starch Holdings pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥450k	CN¥450k	82%
Other	CN¥101k	CN¥97k	18%
Total Compensation	CN¥551k	CN¥547k	100%

On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. Although there is a difference in how total compensation is set, China Starch Holdings more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at China Starch Holdings Limited's Growth Numbers

Over the past three years, China Starch Holdings Limited has seen its earnings per share (EPS) grow by 12% per year. In the last year, its revenue is down 3.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has China Starch Holdings Limited Been A Good Investment?

Since shareholders would have lost about 6.8% over three years, some China Starch Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid 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. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

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 China Starch Holdings that you should be aware of before investing.

Switching gears from China Starch Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.