It's Unlikely That TOM Group Limited's (HKG:2383) CEO Will See A Huge Pay Rise This Year

Key Insights

• TOM Group will host its Annual General Meeting on 9th of May
• CEO Ken Yeung's total compensation includes salary of HK$6.62m
• Total compensation is 145% above industry average
• TOM Group's total shareholder return over the past three years was 22% while its EPS grew by 90% over the past three years

CEO Ken Yeung has done a decent job of delivering relatively good performance at TOM Group Limited (HKG:2383) recently. As shareholders go into the upcoming AGM on 9th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for TOM Group

Comparing TOM Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that TOM Group Limited has a market capitalization of HK$1.9b, and reported total annual CEO compensation of HK$7.1m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$6.62m, 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 ranging between HK$782m and HK$3.1b had a median total CEO compensation of HK$2.9m. Hence, we can conclude that Ken Yeung is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	HK$6.6m	HK$6.5m	93%
Other	HK$471k	HK$459k	7%
Total Compensation	HK$7.1m	HK$7.0m	100%

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. There isn't a significant difference between TOM Group and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

TOM Group Limited's Growth

TOM Group Limited's earnings per share (EPS) grew 90% per year over the last three years. It saw its revenue drop 5.5% over the last 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. 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 TOM Group Limited Been A Good Investment?

With a total shareholder return of 22% over three years, TOM Group Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for TOM Group that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.