We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Jacobson Pharma Corporation Limited's (HKG:2633) CEO For Now

Key Insights

• Jacobson Pharma will host its Annual General Meeting on 28th of July
• Salary of HK$5.92m is part of CEO Derek Sum's total remuneration
• The overall pay is 1,132% above the industry average
• Jacobson Pharma's EPS grew by 18% over the past three years while total shareholder return over the past three years was 301%

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Performance at Jacobson Pharma Corporation Limited (HKG:2633) has been reasonably good and CEO Derek Sum has done a decent job of steering the company in the right direction. 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 will still be cautious of paying the CEO excessively.

Check out our latest analysis for Jacobson Pharma

How Does Total Compensation For Derek Sum Compare With Other Companies In The Industry?

At the time of writing, our data shows that Jacobson Pharma Corporation Limited has a market capitalization of HK$3.4b, and reported total annual CEO compensation of HK$18m for the year to March 2025. Notably, that's a decrease of 13% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$5.9m.

On comparing similar companies from the Hong Kong Pharmaceuticals industry with market caps ranging from HK$1.6b to HK$6.3b, we found that the median CEO total compensation was HK$1.5m. Hence, we can conclude that Derek Sum is remunerated higher than the industry median. Furthermore, Derek Sum directly owns HK$2.3b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that Jacobson Pharma allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Jacobson Pharma Corporation Limited's Growth Numbers

Over the past three years, Jacobson Pharma Corporation Limited has seen its earnings per share (EPS) grow by 18% per year. It achieved revenue growth of 7.4% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jacobson Pharma Corporation Limited Been A Good Investment?

We think that the total shareholder return of 301%, over three years, would leave most Jacobson Pharma Corporation Limited shareholders smiling. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Jacobson Pharma that investors should be aware of in a dynamic business environment.

Switching gears from Jacobson Pharma, 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.