Increases to CEO Compensation Might Be Put On Hold For Now at Hyfusin Group Holdings Limited (HKG:8512)

Key Insights

• Hyfusin Group Holdings to hold its Annual General Meeting on 7th of June
• Salary of HK$3.60m is part of CEO Andrew Wong's total remuneration
• The total compensation is 3,757% higher than the average for the industry
• Hyfusin Group Holdings' EPS grew by 11% over the past three years while total shareholder return over the past three years was 39%

Under the guidance of CEO Andrew Wong, Hyfusin Group Holdings Limited (HKG:8512) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 7th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Hyfusin Group Holdings

How Does Total Compensation For Andrew Wong Compare With Other Companies In The Industry?

Our data indicates that Hyfusin Group Holdings Limited has a market capitalization of HK$312m, and total annual CEO compensation was reported as HK$33m for the year to December 2023. Notably, that's an increase of 51% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$3.6m.

In comparison with other companies in the Hong Kong Household Products industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$844k. Accordingly, our analysis reveals that Hyfusin Group Holdings Limited pays Andrew Wong north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	HK$3.6m	HK$3.6m	11%
Other	HK$29m	HK$18m	89%
Total Compensation	HK$33m	HK$22m	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Hyfusin Group Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Hyfusin Group Holdings Limited's Growth Numbers

Over the past three years, Hyfusin Group Holdings Limited has seen its earnings per share (EPS) grow by 11% per year. In the last year, its revenue is up 26%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Hyfusin Group Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Hyfusin Group Holdings Limited for providing a total return of 39% over three years. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Hyfusin Group Holdings that investors should look into moving forward.

Switching gears from Hyfusin 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.