Most Shareholders Will Probably Agree With Jacobio Pharmaceuticals Group Co., Ltd.'s (HKG:1167) CEO Compensation

Key Insights

• Jacobio Pharmaceuticals Group will host its Annual General Meeting on 7th of June
• Salary of CN¥2.64m is part of CEO Yinxiang Wang's total remuneration
• The overall pay is 56% below the industry average
• Jacobio Pharmaceuticals Group's three-year loss to shareholders was 93% while its EPS grew by 78% over the past three years

Performance at Jacobio Pharmaceuticals Group Co., Ltd. (HKG:1167) has been rather uninspiring recently and shareholders may be wondering how CEO Yinxiang Wang plans to fix this. At the next AGM coming up on 7th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Jacobio Pharmaceuticals Group

How Does Total Compensation For Yinxiang Wang Compare With Other Companies In The Industry?

Our data indicates that Jacobio Pharmaceuticals Group Co., Ltd. has a market capitalization of HK$1.2b, and total annual CEO compensation was reported as CN¥3.4m for the year to December 2023. We note that's a decrease of 9.3% compared to last year. We note that the salary portion, which stands at CN¥2.64m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Hong Kong Biotechs industry with market capitalizations ranging between HK$782m and HK$3.1b had a median total CEO compensation of CN¥7.7m. Accordingly, Jacobio Pharmaceuticals Group pays its CEO under the industry median. What's more, Yinxiang Wang holds HK$168m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CN¥2.6m	CN¥2.3m	77%
Other	CN¥775k	CN¥1.5m	23%
Total Compensation	CN¥3.4m	CN¥3.8m	100%

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. It's interesting to note that Jacobio Pharmaceuticals Group pays out a greater portion of remuneration through salary, compared to the industry. 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.

Jacobio Pharmaceuticals Group Co., Ltd.'s Growth

Jacobio Pharmaceuticals Group Co., Ltd.'s earnings per share (EPS) grew 78% per year over the last three years. Its revenue is down 34% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Jacobio Pharmaceuticals Group Co., Ltd. Been A Good Investment?

With a total shareholder return of -93% over three years, Jacobio Pharmaceuticals Group Co., Ltd. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

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 Jacobio Pharmaceuticals Group that investors should look into moving forward.

Switching gears from Jacobio Pharmaceuticals 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.