Keymed Biosciences Inc.'s (HKG:2162) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Keymed Biosciences will host its Annual General Meeting on 26th of June
• CEO Bo Chen's total compensation includes salary of CN¥4.90m
• The total compensation is similar to the average for the industry
• Keymed Biosciences' EPS grew by 89% over the past three years while total shareholder return over the past three years was 47%

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The performance at Keymed Biosciences Inc. (HKG:2162) has been quite strong recently and CEO Bo Chen has played a role in it. Coming up to the next AGM on 26th of June, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Keymed Biosciences

Comparing Keymed Biosciences Inc.'s CEO Compensation With The Industry

Our data indicates that Keymed Biosciences Inc. has a market capitalization of HK$13b, and total annual CEO compensation was reported as CN¥5.0m for the year to December 2024. That's a modest increase of 3.9% on the prior year. Notably, the salary which is CN¥4.90m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Biotechs industry with market capitalizations ranging from HK$7.8b to HK$25b, the reported median CEO total compensation was CN¥4.7m. This suggests that Keymed Biosciences remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. Keymed Biosciences pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Keymed Biosciences Inc.'s Growth

Keymed Biosciences Inc.'s earnings per share (EPS) grew 89% per year over the last three years. Its revenue is up 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Keymed Biosciences Inc. Been A Good Investment?

Boasting a total shareholder return of 47% over three years, Keymed Biosciences Inc. has done well by shareholders. 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.

In Summary...

Keymed Biosciences pays its CEO a majority of compensation through a salary. Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Keymed Biosciences that investors should be aware of in a dynamic business environment.

Important note: Keymed Biosciences 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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