Here's Why Shareholders Should Examine China Risun Group Limited's (HKG:1907) CEO Compensation Package More Closely

Key Insights

• China Risun Group to hold its Annual General Meeting on 30th of May
• Salary of CN¥5.80m is part of CEO Xuegang Yang's total remuneration
• The total compensation is similar to the average for the industry
• China Risun Group's EPS declined by 80% over the past three years while total shareholder loss over the past three years was 26%

We've discovered 3 warning signs about China Risun Group. View them for free.

China Risun Group Limited (HKG:1907) has not performed well recently and CEO Xuegang Yang will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for China Risun Group

Comparing China Risun Group Limited's CEO Compensation With The Industry

According to our data, China Risun Group Limited has a market capitalization of HK$11b, and paid its CEO total annual compensation worth CN¥5.9m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥5.80m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Chemicals industry with market capitalizations ranging from HK$7.8b to HK$25b, the reported median CEO total compensation was CN¥5.8m. This suggests that China Risun Group remunerates its CEO largely in line with the industry average. What's more, Xuegang Yang holds HK$7.9b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥5.8m	CN¥5.7m	99%
Other	CN¥66k	CN¥63k	1%
Total Compensation	CN¥5.9m	CN¥5.8m	100%

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. China Risun Group has gone down a largely traditional route, paying Xuegang Yang a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at China Risun Group Limited's Growth Numbers

Over the last three years, China Risun Group Limited has shrunk its earnings per share by 80% per year. In the last year, its revenue is up 3.2%.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has China Risun Group Limited Been A Good Investment?

With a three year total loss of 26% for the shareholders, China Risun Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Xuegang 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is potentially serious) in China Risun Group we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.