Tsaker New Energy Tech Co., Limited's (HKG:1986) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Tsaker New Energy Tech's Annual General Meeting to take place on 15th of May
• Salary of CN¥3.71m is part of CEO Yi Ge's total remuneration
• Total compensation is 256% above industry average
• Tsaker New Energy Tech's three-year loss to shareholders was 36% while its EPS was down 75% over the past three years

Our free stock report includes 3 warning signs investors should be aware of before investing in Tsaker New Energy Tech. Read for free now.

Tsaker New Energy Tech Co., Limited (HKG:1986) has not performed well recently and CEO Yi Ge will probably need to up their game. At the upcoming AGM on 15th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Tsaker New Energy Tech

Comparing Tsaker New Energy Tech Co., Limited's CEO Compensation With The Industry

Our data indicates that Tsaker New Energy Tech Co., Limited has a market capitalization of HK$689m, and total annual CEO compensation was reported as CN¥4.2m for the year to December 2024. Notably, that's an increase of 16% over the year before. Notably, the salary which is CN¥3.71m, represents most of the total compensation being paid.

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. Hence, we can conclude that Yi Ge is remunerated higher than the industry median. Furthermore, Yi Ge directly owns HK$379m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CN¥3.7m	CN¥3.2m	88%
Other	CN¥508k	CN¥424k	12%
Total Compensation	CN¥4.2m	CN¥3.6m	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. There isn't a significant difference between Tsaker New Energy Tech and the broader market, in terms of salary allocation in the overall compensation package. 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 Tsaker New Energy Tech Co., Limited's Growth Numbers

Tsaker New Energy Tech Co., Limited has reduced its earnings per share by 75% a year over the last three years. It achieved revenue growth of 4.4% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tsaker New Energy Tech Co., Limited Been A Good Investment?

The return of -36% over three years would not have pleased Tsaker New Energy Tech Co., Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Tsaker New Energy Tech (1 is a bit concerning!) that you should be aware of before investing here.

Important note: Tsaker New Energy Tech 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.