We Discuss Why The CEO Of Universal Health International Group Holding Limited (HKG:2211) Is Due For A Pay Rise

Key Insights

• Universal Health International Group Holding's Annual General Meeting to take place on 11th of December
• Salary of CN¥390.0k is part of CEO Chuanfu Chu's total remuneration
• The overall pay is 73% below the industry average
• Over the past three years, Universal Health International Group Holding's EPS grew by 96% and over the past three years, the total shareholder return was 74%

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Shareholders will be pleased by the impressive results for Universal Health International Group Holding Limited (HKG:2211) recently and CEO Chuanfu Chu has played a key role. At the upcoming AGM on 11th of December, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Universal Health International Group Holding

Comparing Universal Health International Group Holding Limited's CEO Compensation With The Industry

According to our data, Universal Health International Group Holding Limited has a market capitalization of HK$211m, and paid its CEO total annual compensation worth CN¥499k over the year to June 2025. That's slightly lower by 4.2% over the previous year. Notably, the salary which is CN¥390.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Healthcare industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.8m. This suggests that Chuanfu Chu is paid below the industry median. Furthermore, Chuanfu Chu directly owns HK$1.5m 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 80% of total compensation out of all the companies we analyzed, while other remuneration made up 20% of the pie. There isn't a significant difference between Universal Health International Group Holding and the broader market, in terms of salary allocation in the overall compensation package. 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 Universal Health International Group Holding Limited's Growth Numbers

Universal Health International Group Holding Limited has seen its earnings per share (EPS) increase by 96% a year over the past three years. It saw its revenue drop 35% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few 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 Universal Health International Group Holding Limited Been A Good Investment?

Boasting a total shareholder return of 74% over three years, Universal Health International Group Holding Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which shouldn't be ignored) in Universal Health International Group Holding we think you should know about.

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.