Duiba Group Limited's (HKG:1753) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Duiba Group's Annual General Meeting to take place on 30th of May
• Total pay for CEO Xiaoliang Chen includes CN¥523.0k salary
• Total compensation is 63% below industry average
• Duiba Group's three-year loss to shareholders was 79% while its EPS grew by 57% over the past three years

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The performance at Duiba Group Limited (HKG:1753) has been rather lacklustre of late and shareholders may be wondering what CEO Xiaoliang Chen is planning to do about this. At the next AGM coming up on 30th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Duiba Group

How Does Total Compensation For Xiaoliang Chen Compare With Other Companies In The Industry?

Our data indicates that Duiba Group Limited has a market capitalization of HK$178m, and total annual CEO compensation was reported as CN¥1.1m for the year to December 2024. Notably, that's an increase of 16% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥523k.

On comparing similar-sized companies in the Hong Kong Interactive Media and Services industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was CN¥2.9m. That is to say, Xiaoliang Chen is paid under the industry median. Moreover, Xiaoliang Chen also holds HK$76m worth of Duiba Group 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	CN¥523k	CN¥494k	47%
Other	CN¥580k	CN¥460k	53%
Total Compensation	CN¥1.1m	CN¥954k	100%

Talking in terms of the industry, salary represented approximately 32% of total compensation out of all the companies we analyzed, while other remuneration made up 68% of the pie. Duiba Group pays out 47% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Duiba Group Limited's Growth

Duiba Group Limited has seen its earnings per share (EPS) increase by 57% a year over the past three years. Its revenue is down 17% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Duiba Group Limited Been A Good Investment?

With a total shareholder return of -79% over three years, Duiba Group Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Duiba Group (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.