It Looks Like Besunyen Holdings Company Limited's (HKG:926) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Besunyen Holdings will host its Annual General Meeting on 10th of May
• Salary of CN¥1.93m is part of CEO Yihong Zhao's total remuneration
• The overall pay is 118% above the industry average
• Besunyen Holdings' three-year loss to shareholders was 65% while its EPS was down 38% over the past three years

Besunyen Holdings Company Limited (HKG:926) has not performed well recently and CEO Yihong Zhao will probably need to up their game. At the upcoming AGM on 10th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Besunyen Holdings

Comparing Besunyen Holdings Company Limited's CEO Compensation With The Industry

Our data indicates that Besunyen Holdings Company Limited has a market capitalization of HK$337m, and total annual CEO compensation was reported as CN¥2.5m for the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of CN¥1.93m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.2m. This suggests that Yihong Zhao is paid more than the median for the industry. Moreover, Yihong Zhao also holds HK$173m worth of Besunyen Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	CN¥1.9m	CN¥1.9m	76%
Other	CN¥617k	CN¥615k	24%
Total Compensation	CN¥2.5m	CN¥2.5m	100%

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Our data reveals that Besunyen Holdings allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Besunyen Holdings Company Limited's Growth Numbers

Over the last three years, Besunyen Holdings Company Limited has shrunk its earnings per share by 38% per year. It saw its revenue drop 32% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Besunyen Holdings Company Limited Been A Good Investment?

With a total shareholder return of -65% over three years, Besunyen Holdings Company Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Besunyen Holdings you should be aware of, and 1 of them shouldn't be ignored.

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.