Here's Why Shareholders Will Not Be Complaining About YiChang HEC ChangJiang Pharmaceutical Co., Ltd.'s (HKG:1558) CEO Pay Packet

Key Insights

• YiChang HEC ChangJiang Pharmaceutical's Annual General Meeting to take place on 29th of May
• Total pay for CEO Juncai Jiang includes CN¥487.0k salary
• The total compensation is similar to the average for the industry
• YiChang HEC ChangJiang Pharmaceutical's total shareholder return over the past three years was 179% while its EPS grew by 77% over the past three years

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We have been pretty impressed with the performance at YiChang HEC ChangJiang Pharmaceutical Co., Ltd. (HKG:1558) recently and CEO Juncai Jiang deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 29th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for YiChang HEC ChangJiang Pharmaceutical

Comparing YiChang HEC ChangJiang Pharmaceutical Co., Ltd.'s CEO Compensation With The Industry

According to our data, YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has a market capitalization of HK$12b, and paid its CEO total annual compensation worth CN¥3.3m over the year to December 2024. That's a notable increase of 30% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥487k.

For comparison, other companies in the Hong Kong Pharmaceuticals industry with market capitalizations ranging between HK$7.8b and HK$25b had a median total CEO compensation of CN¥4.8m. From this we gather that Juncai Jiang is paid around the median for CEOs in the industry. What's more, Juncai Jiang holds HK$942k 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¥487k	CN¥482k	15%
Other	CN¥2.8m	CN¥2.1m	85%
Total Compensation	CN¥3.3m	CN¥2.6m	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. In YiChang HEC ChangJiang Pharmaceutical's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at YiChang HEC ChangJiang Pharmaceutical Co., Ltd.'s Growth Numbers

YiChang HEC ChangJiang Pharmaceutical Co., Ltd. has seen its earnings per share (EPS) increase by 77% a year over the past three years. In the last year, its revenue is down 41%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 YiChang HEC ChangJiang Pharmaceutical Co., Ltd. Been A Good Investment?

Most shareholders would probably be pleased with YiChang HEC ChangJiang Pharmaceutical Co., Ltd. for providing a total return of 179% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for YiChang HEC ChangJiang Pharmaceutical that you should be aware of before investing.

Important note: YiChang HEC ChangJiang Pharmaceutical is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.