Here's Why Some Shareholders May Not Be Too Generous With Beijing Health (Holdings) Limited's (HKG:2389) CEO Compensation This Year

Key Insights

• Beijing Health (Holdings) will host its Annual General Meeting on 3rd of June
• Total pay for CEO Xue Heng Liu includes HK$852.0k salary
• Total compensation is 53% below industry average
• Beijing Health (Holdings)'s three-year loss to shareholders was 6.7% while its EPS was down 23% over the past three years

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Performance at Beijing Health (Holdings) Limited (HKG:2389) has not been particularly rosy recently and shareholders will likely be holding CEO Xue Heng Liu and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 3rd of June. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for Beijing Health (Holdings)

How Does Total Compensation For Xue Heng Liu Compare With Other Companies In The Industry?

According to our data, Beijing Health (Holdings) Limited has a market capitalization of HK$509m, and paid its CEO total annual compensation worth HK$975k over the year to December 2024. That's a modest increase of 4.8% on the prior year. In particular, the salary of HK$852.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Hong Kong Healthcare industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. That is to say, Xue Heng Liu is paid under the industry median.

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Beijing Health (Holdings) is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Beijing Health (Holdings) Limited's Growth

Over the last three years, Beijing Health (Holdings) Limited has shrunk its earnings per share by 23% per year. Its revenue is up 6.8% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Beijing Health (Holdings) Limited Been A Good Investment?

With a three year total loss of 6.7% for the shareholders, Beijing Health (Holdings) Limited would certainly have some dissatisfied shareholders. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Beijing Health (Holdings) that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.