We Think Some Shareholders May Hesitate To Increase Infinity Development Holdings Company Limited's (HKG:640) CEO Compensation

CEO Un Ieong has done a decent job of delivering relatively good performance at Infinity Development Holdings Company Limited (HKG:640) recently. As shareholders go into the upcoming AGM on 21 March 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Infinity Development Holdings

Comparing Infinity Development Holdings Company Limited's CEO Compensation With the industry

According to our data, Infinity Development Holdings Company Limited has a market capitalization of HK$372m, and paid its CEO total annual compensation worth HK$8.3m over the year to September 2021. Notably, that's a decrease of 8.6% over the year before. We note that the salary portion, which stands at HK$5.06m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. Hence, we can conclude that Un Ieong is remunerated higher than the industry median. What's more, Un Ieong holds HK$278m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	HK$5.1m	HK$4.5m	61%
Other	HK$3.2m	HK$4.5m	39%
Total Compensation	HK$8.3m	HK$9.0m	100%

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. Infinity Development Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Infinity Development Holdings Company Limited's Growth

Over the past three years, Infinity Development Holdings Company Limited has seen its earnings per share (EPS) grow by 4.4% per year. It achieved revenue growth of 18% over the last year.

We would argue that the modest growth in revenue is a notable positive. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Infinity Development Holdings Company Limited Been A Good Investment?

With a total shareholder return of 18% over three years, Infinity Development Holdings Company Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 4 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.

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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.