We Discuss Why Hang Lung Properties Limited's (HKG:101) CEO Compensation May Be Closely Reviewed
Key Insights
- Hang Lung Properties' Annual General Meeting to take place on 30th of April
- CEO Weber Lo's total compensation includes salary of HK$20.6m
- The overall pay is 322% above the industry average
- Over the past three years, Hang Lung Properties' EPS fell by 19% and over the past three years, the total loss to shareholders 52%
Hang Lung Properties Limited (HKG:101) has not performed well recently and CEO Weber Lo will probably need to up their game. At the upcoming AGM on 30th of April, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Hang Lung Properties
Comparing Hang Lung Properties Limited's CEO Compensation With The Industry
Our data indicates that Hang Lung Properties Limited has a market capitalization of HK$30b, and total annual CEO compensation was reported as HK$25m for the year to December 2024. That's a notable decrease of 23% on last year. Notably, the salary which is HK$20.6m, represents most of the total compensation being paid.
On comparing similar companies from the Hong Kong Real Estate industry with market caps ranging from HK$16b to HK$50b, we found that the median CEO total compensation was HK$6.0m. Hence, we can conclude that Weber Lo is remunerated higher than the industry median. Moreover, Weber Lo also holds HK$6.6m worth of Hang Lung Properties stock directly under their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | HK$21m | HK$21m | 82% |
| Other | HK$4.6m | HK$12m | 18% |
| Total Compensation | HK$25m | HK$33m | 100% |
On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Our data reveals that Hang Lung Properties allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Hang Lung Properties Limited's Growth
Hang Lung Properties Limited has reduced its earnings per share by 19% a year over the last three years. In the last year, its revenue is up 8.8%.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Hang Lung Properties Limited Been A Good Investment?
With a total shareholder return of -52% over three years, Hang Lung Properties Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Hang Lung Properties that investors should be aware of in a dynamic business environment.
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.