Here's Why Shareholders Should Examine Seazen Group Limited's (HKG:1030) CEO Compensation Package More Closely

Key Insights

• Seazen Group's Annual General Meeting to take place on 28th of June
• CEO Xiaoping Lv's total compensation includes salary of CN¥3.58m
• The overall pay is comparable to the industry average
• Seazen Group's EPS declined by 81% over the past three years while total shareholder loss over the past three years was 81%

The results at Seazen Group Limited (HKG:1030) have been quite disappointing recently and CEO Xiaoping Lv bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Seazen Group

How Does Total Compensation For Xiaoping Lv Compare With Other Companies In The Industry?

Our data indicates that Seazen Group Limited has a market capitalization of HK$9.8b, and total annual CEO compensation was reported as CN¥5.5m for the year to December 2023. We note that's an increase of 20% above last year. Notably, the salary which is CN¥3.58m, represents most of the total compensation being paid.

On examining similar-sized companies in the Hong Kong Real Estate industry with market capitalizations between HK$7.8b and HK$25b, we discovered that the median CEO total compensation of that group was CN¥4.8m. So it looks like Seazen Group compensates Xiaoping Lv in line with the median for the industry. Moreover, Xiaoping Lv also holds HK$20m worth of Seazen Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	CN¥3.6m	CN¥3.6m	66%
Other	CN¥1.9m	CN¥956k	34%
Total Compensation	CN¥5.5m	CN¥4.6m	100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Seazen Group pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

A Look at Seazen Group Limited's Growth Numbers

Seazen Group Limited has reduced its earnings per share by 81% a year over the last three years. Its revenue is up 2.5% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Seazen Group Limited Been A Good Investment?

Few Seazen Group Limited shareholders would feel satisfied with the return of -81% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Seazen Group that you should be aware of before investing.

Switching gears from Seazen Group, 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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com