We Think Some Shareholders May Hesitate To Increase Takbo Group Holdings Limited's (HKG:8436) CEO Compensation
Key Insights
- Takbo Group Holdings' Annual General Meeting to take place on 9th of May
- Total pay for CEO Naam Or includes HK$3.25m salary
- The overall pay is 231% above the industry average
- Takbo Group Holdings' EPS grew by 14% over the past three years while total shareholder return over the past three years was 8.3%
Performance at Takbo Group Holdings Limited (HKG:8436) has been reasonably good and CEO Naam Or has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Takbo Group Holdings
How Does Total Compensation For Naam Or Compare With Other Companies In The Industry?
According to our data, Takbo Group Holdings Limited has a market capitalization of HK$94m, and paid its CEO total annual compensation worth HK$6.5m over the year to December 2024. We note that's a decrease of 14% compared to last year. We note that the salary of HK$3.25m makes up a sizeable portion of the total compensation received by the CEO.
For comparison, other companies in the Hong Kong Personal Products industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.0m. This suggests that Naam Or is paid more than the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$3.3m | HK$3.0m | 50% |
| Other | HK$3.2m | HK$4.6m | 50% |
| Total Compensation | HK$6.5m | HK$7.6m | 100% |
On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Takbo Group Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. 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 Takbo Group Holdings Limited's Growth Numbers
Takbo Group Holdings Limited's earnings per share (EPS) grew 14% per year over the last three years. It saw its revenue drop 13% 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Takbo Group Holdings Limited Been A Good Investment?
Takbo Group Holdings Limited has generated a total shareholder return of 8.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Takbo Group Holdings (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Takbo Group 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.