Here's Why It's Unlikely That Oriental Enterprise Holdings Limited's (HKG:18) CEO Will See A Pay Rise This Year

Key Insights

• Oriental Enterprise Holdings' Annual General Meeting to take place on 20th of August
• CEO Shun-Chuen Lam's total compensation includes salary of HK$2.42m
• The overall pay is 38% above the industry average
• Over the past three years, Oriental Enterprise Holdings' EPS fell by 32% and over the past three years, the total loss to shareholders 26%

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Oriental Enterprise Holdings Limited (HKG:18) has not performed well recently and CEO Shun-Chuen Lam will probably need to up their game. At the upcoming AGM on 20th of August, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Oriental Enterprise Holdings

Comparing Oriental Enterprise Holdings Limited's CEO Compensation With The Industry

Our data indicates that Oriental Enterprise Holdings Limited has a market capitalization of HK$887m, and total annual CEO compensation was reported as HK$2.6m for the year to March 2025. We note that's a small decrease of 4.4% on last year. In particular, the salary of HK$2.42m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Media industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. This suggests that Shun-Chuen Lam is paid more than the median for the industry.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. It's interesting to note that Oriental Enterprise Holdings pays out a greater portion of remuneration through salary, compared to the industry. 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 Oriental Enterprise Holdings Limited's Growth Numbers

Oriental Enterprise Holdings Limited has reduced its earnings per share by 32% a year over the last three years. In the last year, its revenue is down 13%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Oriental Enterprise Holdings Limited Been A Good Investment?

With a three year total loss of 26% for the shareholders, Oriental Enterprise Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Oriental Enterprise Holdings that investors should think about before committing capital to this stock.

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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.