Shareholders Will Probably Be Cautious Of Increasing Tenfu (Cayman) Holdings Company Limited's (HKG:6868) CEO Compensation At The Moment

Key Insights

• Tenfu (Cayman) Holdings to hold its Annual General Meeting on 9th of May
• Total pay for CEO Chia Ling Lee includes CN¥644.0k salary
• The total compensation is 54% less than the average for the industry
• Over the past three years, Tenfu (Cayman) Holdings' EPS fell by 27% and over the past three years, the total loss to shareholders 25%

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Performance at Tenfu (Cayman) Holdings Company Limited (HKG:6868) has not been particularly rosy recently and shareholders will likely be holding CEO Chia Ling Lee and the board accountable for this. The next AGM coming up on 9th of May 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. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for Tenfu (Cayman) Holdings

How Does Total Compensation For Chia Ling Lee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Tenfu (Cayman) Holdings Company Limited has a market capitalization of HK$3.6b, and reported total annual CEO compensation of CN¥973k for the year to December 2024. That's a fairly small increase of 3.3% over the previous year. We note that the salary portion, which stands at CN¥644.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Food industry with market capitalizations ranging between HK$1.6b and HK$6.2b had a median total CEO compensation of CN¥2.1m. This suggests that Chia Ling Lee is paid below the industry median. Furthermore, Chia Ling Lee directly owns HK$1.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. It's interesting to note that Tenfu (Cayman) Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Tenfu (Cayman) Holdings Company Limited's Growth

Over the last three years, Tenfu (Cayman) Holdings Company Limited has shrunk its earnings per share by 27% per year. In the last year, its revenue is down 9.9%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tenfu (Cayman) Holdings Company Limited Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in Tenfu (Cayman) Holdings Company Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Tenfu (Cayman) Holdings (1 is potentially serious!) that you should be aware of before investing here.

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.