Shareholders May Be Wary Of Increasing P.B. Group Limited's (HKG:8331) CEO Compensation Package

Key Insights

• P.B. Group's Annual General Meeting to take place on 27th of September
• CEO Ho Yin Pang's total compensation includes salary of CN¥856.0k
• The overall pay is comparable to the industry average
• P.B. Group's three-year loss to shareholders was 60% while its EPS was down 93% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at P.B. Group Limited (HKG:8331) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 27th of September. 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.

Check out our latest analysis for P.B. Group

How Does Total Compensation For Ho Yin Pang Compare With Other Companies In The Industry?

At the time of writing, our data shows that P.B. Group Limited has a market capitalization of HK$28m, and reported total annual CEO compensation of CN¥982k for the year to March 2024. We note that's an increase of 10.0% above last year. We note that the salary portion, which stands at CN¥856.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Hong Kong Metals and Mining industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥900k. So it looks like P.B. Group compensates Ho Yin Pang in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	CN¥856k	CN¥931k	87%
Other	CN¥126k		13%
Total Compensation	CN¥982k	CN¥893k	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Although there is a difference in how total compensation is set, P.B. Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at P.B. Group Limited's Growth Numbers

Over the last three years, P.B. Group Limited has shrunk its earnings per share by 93% per year. In the last year, its revenue is down 12%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has P.B. Group Limited Been A Good Investment?

Few P.B. Group Limited shareholders would feel satisfied with the return of -60% over three years. 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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for P.B. Group (1 shouldn't be ignored!) that you should be aware of before investing here.

Important note: P.B. Group 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.