This Is Why Jiangsu Innovative Ecological New Materials Limited's (HKG:2116) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• Jiangsu Innovative Ecological New Materials' Annual General Meeting to take place on 23rd of May
• Total pay for CEO Xiaojun Ge includes CN¥435.0k salary
• The total compensation is 52% less than the average for the industry
• Jiangsu Innovative Ecological New Materials' EPS grew by 6.2% over the past three years while total shareholder return over the past three years was 199%

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The decent performance at Jiangsu Innovative Ecological New Materials Limited (HKG:2116) recently will please most shareholders as they go into the AGM coming up on 23rd of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Jiangsu Innovative Ecological New Materials

Comparing Jiangsu Innovative Ecological New Materials Limited's CEO Compensation With The Industry

According to our data, Jiangsu Innovative Ecological New Materials Limited has a market capitalization of HK$214m, and paid its CEO total annual compensation worth CN¥563k over the year to December 2024. That's a notable increase of 65% on last year. Notably, the salary which is CN¥435.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Chemicals industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥1.2m. Accordingly, Jiangsu Innovative Ecological New Materials pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	CN¥435k	CN¥205k	77%
Other	CN¥128k	CN¥137k	23%
Total Compensation	CN¥563k	CN¥342k	100%

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. There isn't a significant difference between Jiangsu Innovative Ecological New Materials and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Jiangsu Innovative Ecological New Materials Limited's Growth

Jiangsu Innovative Ecological New Materials Limited has seen its earnings per share (EPS) increase by 6.2% a year over the past three years. Its revenue is down 2.1% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Jiangsu Innovative Ecological New Materials Limited Been A Good Investment?

Boasting a total shareholder return of 199% over three years, Jiangsu Innovative Ecological New Materials Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Jiangsu Innovative Ecological New Materials you should be aware of, and 1 of them can't be ignored.

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.