It's Unlikely That Ocumension Therapeutics' (HKG:1477) CEO Will See A Huge Pay Rise This Year
Key Insights
- Ocumension Therapeutics to hold its Annual General Meeting on 19th of June
- CEO Victor Liu's total compensation includes salary of CN¥4.50m
- Total compensation is 99% above industry average
- Ocumension Therapeutics' EPS grew by 6.0% over the past three years while total shareholder loss over the past three years was 7.7%
As many shareholders of Ocumension Therapeutics (HKG:1477) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 19th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Ocumension Therapeutics
Comparing Ocumension Therapeutics' CEO Compensation With The Industry
At the time of writing, our data shows that Ocumension Therapeutics has a market capitalization of HK$7.8b, and reported total annual CEO compensation of CN¥6.3m for the year to December 2024. That's a modest increase of 6.0% on the prior year. In particular, the salary of CN¥4.50m, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the Hong Kong Pharmaceuticals industry with market caps ranging from HK$3.1b to HK$13b, we found that the median CEO total compensation was CN¥3.2m. Accordingly, our analysis reveals that Ocumension Therapeutics pays Victor Liu north of the industry median. What's more, Victor Liu holds HK$360m 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 | CN¥4.5m | CN¥4.2m | 71% |
| Other | CN¥1.8m | CN¥1.7m | 29% |
| Total Compensation | CN¥6.3m | CN¥5.9m | 100% |
On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. According to our research, Ocumension Therapeutics has allocated a higher percentage of pay to salary in comparison to the wider 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.
Ocumension Therapeutics' Growth
Over the past three years, Ocumension Therapeutics has seen its earnings per share (EPS) grow by 6.0% per year. Its revenue is up 69% over the last year.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Ocumension Therapeutics Been A Good Investment?
Given the total shareholder loss of 7.7% over three years, many shareholders in Ocumension Therapeutics are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Ocumension Therapeutics that investors should be aware of in a dynamic business environment.
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.
Valuation is complex, but we're here to simplify it.
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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.