Hansoh Pharmaceutical Group Company Limited's (HKG:3692) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Hansoh Pharmaceutical Group to hold its Annual General Meeting on 13th of June
• CEO Huijuan Zhong's total compensation includes salary of CN¥7.34m
• The overall pay is comparable to the industry average
• Over the past three years, Hansoh Pharmaceutical Group's EPS grew by 8.2% and over the past three years, the total loss to shareholders 45%

Shareholders of Hansoh Pharmaceutical Group Company Limited (HKG:3692) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 13th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Hansoh Pharmaceutical Group

How Does Total Compensation For Huijuan Zhong Compare With Other Companies In The Industry?

According to our data, Hansoh Pharmaceutical Group Company Limited has a market capitalization of HK$106b, and paid its CEO total annual compensation worth CN¥15m over the year to December 2023. That's a notable increase of 33% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CN¥7.3m.

In comparison with other companies in the Hong Kong Pharmaceuticals industry with market capitalizations over HK$62b, the reported median total CEO compensation was CN¥13m. This suggests that Hansoh Pharmaceutical Group remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	CN¥7.3m	CN¥4.7m	50%
Other	CN¥7.5m	CN¥6.5m	50%
Total Compensation	CN¥15m	CN¥11m	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that Hansoh Pharmaceutical Group allocates a smaller portion of compensation to salary 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.

Hansoh Pharmaceutical Group Company Limited's Growth

Hansoh Pharmaceutical Group Company Limited has seen its earnings per share (EPS) increase by 8.2% a year over the past three years. Its revenue is up 7.7% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hansoh Pharmaceutical Group Company Limited Been A Good Investment?

Few Hansoh Pharmaceutical Group Company Limited shareholders would feel satisfied with the return of -45% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

Shareholders may want to check for free if Hansoh Pharmaceutical Group insiders are buying or selling shares.

Important note: Hansoh Pharmaceutical Group 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.