Here's Why GHW International's (HKG:9933) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
- GHW International's Annual General Meeting to take place on 27th of May
- Salary of CN¥1.10m is part of CEO Yanbin Yin's total remuneration
- Total compensation is similar to the industry average
- Over the past three years, GHW International's EPS fell by 53% and over the past three years, the total shareholder return was 326%
CEO Yanbin Yin has done a decent job of delivering relatively good performance at GHW International (HKG:9933) 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 27th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for GHW International
Comparing GHW International's CEO Compensation With The Industry
Our data indicates that GHW International has a market capitalization of HK$1.5b, and total annual CEO compensation was reported as CN¥1.3m for the year to December 2024. That's a slight decrease of 5.8% on the prior year. Notably, the salary which is CN¥1.10m, represents most of the total compensation being paid.
In comparison with other companies in the Hong Kong Chemicals industry with market capitalizations ranging from HK$783m to HK$3.1b, the reported median CEO total compensation was CN¥1.3m. From this we gather that Yanbin Yin is paid around the median for CEOs in the industry. What's more, Yanbin Yin holds HK$615m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CN¥1.1m | CN¥984k | 84% |
| Other | CN¥206k | CN¥404k | 16% |
| Total Compensation | CN¥1.3m | CN¥1.4m | 100% |
On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Although there is a difference in how total compensation is set, GHW International more or less reflects the market in terms of setting the salary. 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 GHW International's Growth Numbers
GHW International has reduced its earnings per share by 53% a year over the last three years. It achieved revenue growth of 20% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 GHW International Been A Good Investment?
Boasting a total shareholder return of 326% over three years, GHW International 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.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for GHW International (1 is a bit concerning!) that you should be aware of before investing here.
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.