Here's Why Shareholders May Want To Be Cautious With Increasing JBM (Healthcare) Limited's (HKG:2161) CEO Pay Packet

Key Insights

• JBM (Healthcare)'s Annual General Meeting to take place on 28th of July
• Salary of HK$2.24m is part of CEO Patrick Wong's total remuneration
• The total compensation is 106% higher than the average for the industry
• JBM (Healthcare)'s EPS grew by 106% over the past three years while total shareholder return over the past three years was 386%

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Under the guidance of CEO Patrick Wong, JBM (Healthcare) Limited (HKG:2161) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for JBM (Healthcare)

Comparing JBM (Healthcare) Limited's CEO Compensation With The Industry

Our data indicates that JBM (Healthcare) Limited has a market capitalization of HK$2.5b, and total annual CEO compensation was reported as HK$3.0m for the year to March 2025. That's a notable increase of 26% on last year. Notably, the salary which is HK$2.24m, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Pharmaceuticals industry with market capitalizations between HK$1.6b and HK$6.3b, we discovered that the median CEO total compensation of that group was HK$1.5m. Hence, we can conclude that Patrick Wong is remunerated higher than the industry median. What's more, Patrick Wong holds HK$1.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. There isn't a significant difference between JBM (Healthcare) and the broader market, in terms of salary allocation in the overall compensation package. 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.

JBM (Healthcare) Limited's Growth

JBM (Healthcare) Limited has seen its earnings per share (EPS) increase by 106% a year over the past three years. Its revenue is up 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has JBM (Healthcare) Limited Been A Good Investment?

Most shareholders would probably be pleased with JBM (Healthcare) Limited for providing a total return of 386% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

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 JBM (Healthcare) that investors should think about before committing capital to this stock.

Switching gears from JBM (Healthcare), 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.