Shareholders May Be More Conservative With Infinity Development Holdings Company Limited's (HKG:640) CEO Compensation For Now

Key Insights

• Infinity Development Holdings to hold its Annual General Meeting on 24th of February
• Total pay for CEO Un Ieong includes HK$5.56m salary
• Total compensation is 608% above industry average
• Infinity Development Holdings' total shareholder return over the past three years was 83% while its EPS grew by 34% over the past three years

Under the guidance of CEO Un Ieong, Infinity Development Holdings Company Limited (HKG:640) 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 24th of February. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Infinity Development Holdings

How Does Total Compensation For Un Ieong Compare With Other Companies In The Industry?

At the time of writing, our data shows that Infinity Development Holdings Company Limited has a market capitalization of HK$535m, and reported total annual CEO compensation of HK$9.0m for the year to September 2024. That's a notable decrease of 8.9% on last year. Notably, the salary which is HK$5.56m, 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 HK$1.3m. Hence, we can conclude that Un Ieong is remunerated higher than the industry median. Moreover, Un Ieong also holds HK$400m worth of Infinity Development Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$5.6m	HK$5.4m	61%
Other	HK$3.5m	HK$4.5m	39%
Total Compensation	HK$9.0m	HK$9.9m	100%

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. Infinity Development Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Infinity Development Holdings Company Limited's Growth Numbers

Infinity Development Holdings Company Limited's earnings per share (EPS) grew 34% per year over the last three years. In the last year, its revenue is up 9.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Infinity Development Holdings Company Limited Been A Good Investment?

Boasting a total shareholder return of 83% over three years, Infinity Development Holdings Company Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Infinity Development Holdings that investors should think about before committing capital to this stock.

Switching gears from Infinity Development 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.