It Looks Like Kaisa Group Holdings Ltd.'s (HKG:1638) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Kaisa Group Holdings' Annual General Meeting to take place on 25th of June
• Total pay for CEO Fan Mai includes CN¥3.75m salary
• The total compensation is 127% higher than the average for the industry
• Over the past three years, Kaisa Group Holdings' EPS fell by 62% and over the past three years, the total loss to shareholders 96%

Shareholders will probably not be too impressed with the underwhelming results at Kaisa Group Holdings Ltd. (HKG:1638) recently. At the upcoming AGM on 25th of June, 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Kaisa Group Holdings

How Does Total Compensation For Fan Mai Compare With Other Companies In The Industry?

Our data indicates that Kaisa Group Holdings Ltd. has a market capitalization of HK$912m, and total annual CEO compensation was reported as CN¥3.8m for the year to December 2023. That's a notable decrease of 54% on last year. Notably, the salary which is CN¥3.75m, represents most of the total compensation being paid.

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 CN¥1.7m. This suggests that Fan Mai is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CN¥3.8m	CN¥8.2m	98%
Other	CN¥95k	CN¥98k	2%
Total Compensation	CN¥3.8m	CN¥8.3m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Investors will find it interesting that Kaisa Group Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Kaisa Group Holdings Ltd.'s Growth

Over the last three years, Kaisa Group Holdings Ltd. has shrunk its earnings per share by 62% per year. Its revenue is up 3.0% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Kaisa Group Holdings Ltd. Been A Good Investment?

The return of -96% over three years would not have pleased Kaisa Group Holdings Ltd. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Kaisa Group Holdings pays its CEO a majority of compensation through a salary. 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, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Kaisa Group Holdings (1 is concerning!) that you should be aware of before investing here.

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.

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