Green Future Food Hydrocolloid Marine Science Company Limited's (HKG:1084) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Green Future Food Hydrocolloid Marine Science's Annual General Meeting to take place on 6th of June
• Total pay for CEO Kam Chung Chan includes CN¥912.0k salary
• The overall pay is comparable to the industry average
• Green Future Food Hydrocolloid Marine Science's EPS declined by 12% over the past three years while total shareholder loss over the past three years was 82%

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Green Future Food Hydrocolloid Marine Science Company Limited (HKG:1084) has not performed well recently and CEO Kam Chung Chan will probably need to up their game. At the upcoming AGM on 6th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Green Future Food Hydrocolloid Marine Science

Comparing Green Future Food Hydrocolloid Marine Science Company Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Green Future Food Hydrocolloid Marine Science Company Limited has a market capitalization of HK$629m, and reported total annual CEO compensation of CN¥928k for the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CN¥912.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Chemicals industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.2m. So it looks like Green Future Food Hydrocolloid Marine Science compensates Kam Chung Chan in line with the median for the industry. Moreover, Kam Chung Chan also holds HK$116m worth of Green Future Food Hydrocolloid Marine Science stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Investors will find it interesting that Green Future Food Hydrocolloid Marine Science pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Green Future Food Hydrocolloid Marine Science Company Limited's Growth

Over the last three years, Green Future Food Hydrocolloid Marine Science Company Limited has shrunk its earnings per share by 12% per year. In the last year, its revenue is down 16%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Green Future Food Hydrocolloid Marine Science Company Limited Been A Good Investment?

The return of -82% over three years would not have pleased Green Future Food Hydrocolloid Marine Science Company Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Kam Chung receives almost all of their compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Green Future Food Hydrocolloid Marine Science (1 is concerning!) that you should be aware of before investing here.

Important note: Green Future Food Hydrocolloid Marine Science is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.