Some Shareholders May Object To A Pay Rise For Inkeverse Group Limited's (HKG:3700) CEO This Year

Key Insights

• Inkeverse Group will host its Annual General Meeting on 26th of June
• CEO Yousheng Feng's total compensation includes salary of CN¥1.03m
• Total compensation is 43% below industry average
• Inkeverse Group's three-year loss to shareholders was 21% while its EPS was down 25% over the past three years

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The underwhelming performance at Inkeverse Group Limited (HKG:3700) recently has probably not pleased shareholders. The next AGM coming up on 26th of June will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Inkeverse Group

How Does Total Compensation For Yousheng Feng Compare With Other Companies In The Industry?

At the time of writing, our data shows that Inkeverse Group Limited has a market capitalization of HK$2.1b, and reported total annual CEO compensation of CN¥3.2m for the year to December 2024. That's slightly lower by 5.7% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at CN¥1.0m.

In comparison with other companies in the Hong Kong Interactive Media and Services industry with market capitalizations ranging from HK$785m to HK$3.1b, the reported median CEO total compensation was CN¥5.5m. Accordingly, Inkeverse Group pays its CEO under the industry median. Furthermore, Yousheng Feng directly owns HK$391m worth of shares in the company, implying that they are deeply invested in the company's success.

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. Inkeverse Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Inkeverse Group Limited's Growth

Over the last three years, Inkeverse Group Limited has shrunk its earnings per share by 25% per year. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Inkeverse Group Limited Been A Good Investment?

Since shareholders would have lost about 21% over three years, some Inkeverse Group Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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. That's why we did some digging and identified 2 warning signs for Inkeverse Group that investors should think about before committing capital to this stock.

Switching gears from Inkeverse Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.