Should Shareholders Reconsider Cheuk Nang (Holdings) Limited's (HKG:131) CEO Compensation Package?

Key Insights

• Cheuk Nang (Holdings) to hold its Annual General Meeting on 20th of November
• Salary of HK$9.72m is part of CEO Cecil Chao's total remuneration
• The total compensation is 539% higher than the average for the industry
• Over the past three years, Cheuk Nang (Holdings)'s EPS fell by 71% and over the past three years, the total loss to shareholders 40%

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Cheuk Nang (Holdings) Limited (HKG:131) has not performed well recently and CEO Cecil Chao will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of November. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Cheuk Nang (Holdings)

How Does Total Compensation For Cecil Chao Compare With Other Companies In The Industry?

Our data indicates that Cheuk Nang (Holdings) Limited has a market capitalization of HK$790m, and total annual CEO compensation was reported as HK$9.7m for the year to June 2025. That's mostly flat as compared to the prior year's compensation. Notably, the salary of HK$9.7m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Hong Kong Real Estate industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.5m. This suggests that Cecil Chao is paid more than the median for the industry. What's more, Cecil Chao holds HK$564m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. At the company level, Cheuk Nang (Holdings) pays Cecil Chao solely through a salary, preferring to go down a conventional route. 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.

Cheuk Nang (Holdings) Limited's Growth

Over the last three years, Cheuk Nang (Holdings) Limited has shrunk its earnings per share by 71% per year. It saw its revenue drop 10% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Cheuk Nang (Holdings) Limited Been A Good Investment?

The return of -40% over three years would not have pleased Cheuk Nang (Holdings) Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Cheuk Nang (Holdings) rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Cheuk Nang (Holdings) we think you should know about.

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.