Increases to International Entertainment Corporation's (HKG:1009) CEO Compensation Might Cool off for now

Key Insights

• International Entertainment's Annual General Meeting to take place on 14th of November
• Salary of HK$1.08m is part of CEO Henri Ho's total remuneration
• The total compensation is 60% higher than the average for the industry
• International Entertainment's EPS grew by 63% over the past three years while total shareholder return over the past three years was 82%

Under the guidance of CEO Henri Ho, International Entertainment Corporation (HKG:1009) has performed reasonably well recently. As shareholders go into the upcoming AGM on 14th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for International Entertainment

Comparing International Entertainment Corporation's CEO Compensation With The Industry

According to our data, International Entertainment Corporation has a market capitalization of HK$986m, and paid its CEO total annual compensation worth HK$2.9m over the year to June 2024. Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$1.1m.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.8m. Accordingly, our analysis reveals that International Entertainment Corporation pays Henri Ho north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	HK$1.1m	HK$789k	37%
Other	HK$1.9m	HK$1.9m	63%
Total Compensation	HK$2.9m	HK$2.6m	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. International Entertainment pays a modest slice of remuneration through salary, as compared 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 International Entertainment Corporation's Growth Numbers

International Entertainment Corporation has seen its earnings per share (EPS) increase by 63% a year over the past three years. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has International Entertainment Corporation Been A Good Investment?

Boasting a total shareholder return of 82% over three years, International Entertainment Corporation 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling International Entertainment shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.