The CEO Of Uni-Bio Science Group Limited (HKG:690) Might See A Pay Rise On The Horizon

Key Insights

• Uni-Bio Science Group to hold its Annual General Meeting on 26th of May
• Salary of HK$606.0k is part of CEO Frank Zhao's total remuneration
• Total compensation is 70% below industry average
• Uni-Bio Science Group's EPS grew by 76% over the past three years while total shareholder return over the past three years was 20%

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Shareholders will be pleased by the robust performance of Uni-Bio Science Group Limited (HKG:690) recently and this will be kept in mind in the upcoming AGM on 26th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Uni-Bio Science Group

How Does Total Compensation For Frank Zhao Compare With Other Companies In The Industry?

Our data indicates that Uni-Bio Science Group Limited has a market capitalization of HK$460m, and total annual CEO compensation was reported as HK$1.2m for the year to December 2024. We note that's an increase of 30% above last year. In particular, the salary of HK$606.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Hong Kong Biotechs industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$4.0m. In other words, Uni-Bio Science Group pays its CEO lower than the industry median. Moreover, Frank Zhao also holds HK$620k worth of Uni-Bio Science Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	HK$606k	HK$604k	52%
Other	HK$563k	HK$296k	48%
Total Compensation	HK$1.2m	HK$900k	100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. There isn't a significant difference between Uni-Bio Science Group 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.

Uni-Bio Science Group Limited's Growth

Over the past three years, Uni-Bio Science Group Limited has seen its earnings per share (EPS) grow by 76% per year. In the last year, its revenue is up 14%.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Uni-Bio Science Group Limited Been A Good Investment?

With a total shareholder return of 20% over three years, Uni-Bio Science Group Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Uni-Bio Science Group (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.