Here's Why Shareholders Will Not Be Complaining About Ascentage Pharma Group International's (HKG:6855) CEO Pay Packet
Key Insights
- Ascentage Pharma Group International will host its Annual General Meeting on 19th of May
- Total pay for CEO Dajun Yang includes CN¥3.92m salary
- The total compensation is similar to the average for the industry
- Ascentage Pharma Group International's EPS grew by 24% over the past three years while total shareholder return over the past three years was 279%
We have been pretty impressed with the performance at Ascentage Pharma Group International (HKG:6855) recently and CEO Dajun Yang deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 19th of May. 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.
Check out our latest analysis for Ascentage Pharma Group International
Comparing Ascentage Pharma Group International's CEO Compensation With The Industry
According to our data, Ascentage Pharma Group International has a market capitalization of HK$15b, and paid its CEO total annual compensation worth CN¥4.2m over the year to December 2024. Notably, that's a decrease of 12% over the year before. We note that the salary portion, which stands at CN¥3.92m constitutes the majority of total compensation received by the CEO.
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¥5.7m. This suggests that Ascentage Pharma Group International remunerates its CEO largely in line with the industry average. What's more, Dajun Yang holds HK$1.0b 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¥3.9m | CN¥4.5m | 93% |
| Other | CN¥273k | CN¥253k | 7% |
| Total Compensation | CN¥4.2m | CN¥4.8m | 100% |
Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. Ascentage Pharma Group International pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Ascentage Pharma Group International's Growth Numbers
Ascentage Pharma Group International's earnings per share (EPS) grew 24% per year over the last three years. Its revenue is up 342% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Ascentage Pharma Group International Been A Good Investment?
Boasting a total shareholder return of 279% over three years, Ascentage Pharma Group International 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.
To Conclude...
Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
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 2 warning signs for Ascentage Pharma Group International that you should be aware of before investing.
Switching gears from Ascentage Pharma Group International, 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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