The CEO Of Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (HKG:874) Might See A Pay Rise On The Horizon

Key Insights

• Guangzhou Baiyunshan Pharmaceutical Holdings to hold its Annual General Meeting on 30th of May
• Salary of CN¥471.3k is part of CEO Hong Li's total remuneration
• The overall pay is 73% below the industry average
• Guangzhou Baiyunshan Pharmaceutical Holdings' EPS grew by 6.9% over the past three years while total shareholder return over the past three years was 8.4%

Shareholders will probably not be disappointed by the robust results at Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (HKG:874) recently and they will be keeping this in mind as they go into the AGM on 30th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Guangzhou Baiyunshan Pharmaceutical Holdings

Comparing Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited has a market capitalization of HK$53b, and reported total annual CEO compensation of CN¥1.5m for the year to December 2023. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥471k.

For comparison, other companies in the Hong Kong Healthcare industry with market capitalizations ranging between HK$31b and HK$94b had a median total CEO compensation of CN¥5.8m. In other words, Guangzhou Baiyunshan Pharmaceutical Holdings pays its CEO lower than the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥471k	CN¥460k	31%
Other	CN¥1.1m	CN¥1.0m	69%
Total Compensation	CN¥1.5m	CN¥1.5m	100%

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. Guangzhou Baiyunshan Pharmaceutical Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited's Growth

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited has seen its earnings per share (EPS) increase by 6.9% a year over the past three years. In the last year, its revenue is up 6.9%.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited Been A Good Investment?

Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited has generated a total shareholder return of 8.4% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Guangzhou Baiyunshan Pharmaceutical Holdings that investors should look into moving forward.

Switching gears from Guangzhou Baiyunshan Pharmaceutical 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.