Shareholders Will Probably Hold Off On Increasing IGG Inc's (HKG:799) CEO Compensation For The Time Being

Key Insights

• IGG to hold its Annual General Meeting on 28th of May
• Salary of HK$6.15m is part of CEO Duke Cai's total remuneration
• The overall pay is 558% above the industry average
• Over the past three years, IGG's EPS grew by 17% and over the past three years, the total shareholder return was 28%

We've discovered 1 warning sign about IGG. View them for free.

Performance at IGG Inc (HKG:799) has been reasonably good and CEO Duke Cai has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 28th 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.

View our latest analysis for IGG

How Does Total Compensation For Duke Cai Compare With Other Companies In The Industry?

Our data indicates that IGG Inc has a market capitalization of HK$4.1b, and total annual CEO compensation was reported as HK$17m for the year to December 2024. That's a notable decrease of 10% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$6.2m.

In comparison with other companies in the Hong Kong Entertainment industry with market capitalizations ranging from HK$1.6b to HK$6.3b, the reported median CEO total compensation was HK$2.6m. Hence, we can conclude that Duke Cai is remunerated higher than the industry median. What's more, Duke Cai holds HK$767m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	HK$6.2m	HK$6.4m	36%
Other	HK$11m	HK$13m	64%
Total Compensation	HK$17m	HK$19m	100%

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. IGG pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

IGG Inc's Growth

IGG Inc's earnings per share (EPS) grew 17% per year over the last three years. Its revenue is up 8.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has IGG Inc Been A Good Investment?

IGG Inc has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for IGG 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.

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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.