Here's Why Anhui Conch Cement Company Limited's (HKG:914) CEO May Not Expect A Pay Rise This Year

Key Insights

• Anhui Conch Cement's Annual General Meeting to take place on 30th of May
• Total pay for CEO Qunfeng Li includes CN¥903.0k salary
• The total compensation is 77% less than the average for the industry
• Anhui Conch Cement's three-year loss to shareholders was 49% while its EPS was down 36% over the past three years

Performance at Anhui Conch Cement Company Limited (HKG:914) has not been particularly rosy recently and shareholders will likely be holding CEO Qunfeng Li and the board accountable for this. The next AGM coming up on 30th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for Anhui Conch Cement

How Does Total Compensation For Qunfeng Li Compare With Other Companies In The Industry?

At the time of writing, our data shows that Anhui Conch Cement Company Limited has a market capitalization of HK$133b, and reported total annual CEO compensation of CN¥2.0m for the year to December 2023. Notably, that's a decrease of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥903k.

In comparison with other companies in the Hong Kong Basic Materials industry with market capitalizations over HK$62b, the reported median total CEO compensation was CN¥8.7m. This suggests that Qunfeng Li is paid below the industry median.

Component	2023	2022	Proportion (2023)
Salary	CN¥903k	CN¥1.2m	46%
Other	CN¥1.1m	CN¥1.0m	54%
Total Compensation	CN¥2.0m	CN¥2.2m	100%

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. In Anhui Conch Cement's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Anhui Conch Cement Company Limited's Growth Numbers

Over the last three years, Anhui Conch Cement Company Limited has shrunk its earnings per share by 36% per year. It saw its revenue drop 5.1% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Anhui Conch Cement Company Limited Been A Good Investment?

With a total shareholder return of -49% over three years, Anhui Conch Cement Company Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Anhui Conch Cement that investors should look into moving forward.

Important note: Anhui Conch Cement 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.