It's Unlikely That Shareholders Will Increase BAIOO Family Interactive Limited's (HKG:2100) Compensation By Much This Year

Key Insights

• BAIOO Family Interactive's Annual General Meeting to take place on 27th of June
• Salary of CN¥1.08m is part of CEO Jian Dai's total remuneration
• The overall pay is 57% below the industry average
• Over the past three years, BAIOO Family Interactive's EPS fell by 30% and over the past three years, the total loss to shareholders 14%

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The underwhelming performance at BAIOO Family Interactive Limited (HKG:2100) recently has probably not pleased shareholders. At the upcoming AGM on 27th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for BAIOO Family Interactive

Comparing BAIOO Family Interactive Limited's CEO Compensation With The Industry

According to our data, BAIOO Family Interactive Limited has a market capitalization of HK$1.4b, and paid its CEO total annual compensation worth CN¥1.3m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥1.08m, represents most of the total compensation being paid.

On comparing similar companies from the Hong Kong Entertainment industry with market caps ranging from HK$785m to HK$3.1b, we found that the median CEO total compensation was CN¥3.0m. In other words, BAIOO Family Interactive pays its CEO lower than the industry median. Moreover, Jian Dai also holds HK$334m worth of BAIOO Family Interactive stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. There isn't a significant difference between BAIOO Family Interactive and the broader market, in terms of salary allocation in the overall compensation package. 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.

BAIOO Family Interactive Limited's Growth

BAIOO Family Interactive Limited has reduced its earnings per share by 30% a year over the last three years. In the last year, its revenue is down 30%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 BAIOO Family Interactive Limited Been A Good Investment?

With a three year total loss of 14% for the shareholders, BAIOO Family Interactive Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for BAIOO Family Interactive that investors should be aware of in a dynamic business environment.

Important note: BAIOO Family Interactive 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.