Ever Sunshine Services Group Limited's (HKG:1995) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Ever Sunshine Services Group's Annual General Meeting to take place on 22nd of May
• Salary of CN¥4.42m is part of CEO Hongbin Zhou's total remuneration
• The overall pay is 91% above the industry average
• Ever Sunshine Services Group's EPS declined by 8.9% over the past three years while total shareholder loss over the past three years was 74%

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Shareholders will probably not be too impressed with the underwhelming results at Ever Sunshine Services Group Limited (HKG:1995) recently. At the upcoming AGM on 22nd of May, 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.

View our latest analysis for Ever Sunshine Services Group

Comparing Ever Sunshine Services Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Ever Sunshine Services Group Limited has a market capitalization of HK$3.3b, and reported total annual CEO compensation of CN¥5.2m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CN¥4.42m, represents most of the total compensation being paid.

In comparison with other companies in the Hong Kong Real Estate industry with market capitalizations ranging from HK$1.6b to HK$6.2b, the reported median CEO total compensation was CN¥2.7m. This suggests that Hongbin Zhou is paid more than the median for the industry. What's more, Hongbin Zhou holds HK$120m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. Ever Sunshine Services Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Ever Sunshine Services Group Limited's Growth

Over the last three years, Ever Sunshine Services Group Limited has shrunk its earnings per share by 8.9% per year. It achieved revenue growth of 4.6% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Ever Sunshine Services Group Limited Been A Good Investment?

Few Ever Sunshine Services Group Limited shareholders would feel satisfied with the return of -74% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Ever Sunshine Services Group that investors should look into moving forward.

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.