Most Shareholders Will Probably Find That The Compensation For Peijia Medical Limited's (HKG:9996) CEO Is Reasonable

Key Insights

• Peijia Medical to hold its Annual General Meeting on 27th of May
• Salary of CN¥740.0k is part of CEO Yi Zhang's total remuneration
• Total compensation is 45% below industry average
• Peijia Medical's EPS grew by 27% over the past three years while total shareholder loss over the past three years was 14%

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Performance at Peijia Medical Limited (HKG:9996) has been rather uninspiring recently and shareholders may be wondering how CEO Yi Zhang plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 27th of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Peijia Medical

Comparing Peijia Medical Limited's CEO Compensation With The Industry

According to our data, Peijia Medical Limited has a market capitalization of HK$3.8b, and paid its CEO total annual compensation worth CN¥2.1m over the year to December 2024. That's a notable increase of 41% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥740k.

On examining similar-sized companies in the Hong Kong Medical Equipment industry with market capitalizations between HK$1.6b and HK$6.3b, we discovered that the median CEO total compensation of that group was CN¥3.7m. This suggests that Yi Zhang is paid below the industry median. Moreover, Yi Zhang also holds HK$30m worth of Peijia Medical stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	CN¥740k	CN¥740k	36%
Other	CN¥1.3m	CN¥720k	64%
Total Compensation	CN¥2.1m	CN¥1.5m	100%

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. In Peijia Medical's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Peijia Medical Limited's Growth Numbers

Peijia Medical Limited has seen its earnings per share (EPS) increase by 27% a year over the past three years. Its revenue is up 40% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Peijia Medical Limited Been A Good Investment?

Given the total shareholder loss of 14% over three years, many shareholders in Peijia Medical Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the strong EPS growth recently, the share price has not performed to expectations and it suggests that other factors might be driving it, apart from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Peijia Medical (free visualization of insider trades).

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.