Here's Why It's Unlikely That Hong Kong Economic Times Holdings Limited's (HKG:423) CEO Will See A Pay Rise This Year

Key Insights

• Hong Kong Economic Times Holdings will host its Annual General Meeting on 31st of July
• Total pay for CEO Lawrence Fung includes HK$3.26m salary
• The overall pay is 93% above the industry average
• Hong Kong Economic Times Holdings' EPS declined by 36% over the past three years while total shareholder loss over the past three years was 10%

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Shareholders will probably not be too impressed with the underwhelming results at Hong Kong Economic Times Holdings Limited (HKG:423) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 31st of July. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Hong Kong Economic Times Holdings

Comparing Hong Kong Economic Times Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Hong Kong Economic Times Holdings Limited has a market capitalization of HK$354m, and reported total annual CEO compensation of HK$3.7m for the year to March 2025. Notably, that's a decrease of 10% over the year before. Notably, the salary which is HK$3.26m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Media industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. Accordingly, our analysis reveals that Hong Kong Economic Times Holdings Limited pays Lawrence Fung north of the industry median. Furthermore, Lawrence Fung directly owns HK$45m 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 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. Our data reveals that Hong Kong Economic Times Holdings allocates salary more or less in line with the wider market. 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.

Hong Kong Economic Times Holdings Limited's Growth

Over the last three years, Hong Kong Economic Times Holdings Limited has shrunk its earnings per share by 36% per year. Its revenue is down 13% over the previous year.

Overall this is not a very positive result for shareholders. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hong Kong Economic Times Holdings Limited Been A Good Investment?

With a three year total loss of 10% for the shareholders, Hong Kong Economic Times Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Hong Kong Economic Times Holdings (2 are a bit unpleasant!) that you should be aware of before investing here.

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.