Great China Holdings (Hong Kong) Limited's (HKG:21) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Great China Holdings (Hong Kong) to hold its Annual General Meeting on 6th of June
• CEO Wenxi Huang's total compensation includes salary of HK$834.0k
• The overall pay is 38% below the industry average
• Great China Holdings (Hong Kong)'s three-year loss to shareholders was 21% while its EPS grew by 4.1% over the past three years

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Shareholders may be wondering what CEO Wenxi Huang plans to do to improve the less than great performance at Great China Holdings (Hong Kong) Limited (HKG:21) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 6th of June. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Great China Holdings (Hong Kong)

How Does Total Compensation For Wenxi Huang Compare With Other Companies In The Industry?

At the time of writing, our data shows that Great China Holdings (Hong Kong) Limited has a market capitalization of HK$453m, and reported total annual CEO compensation of HK$1.0m for the year to December 2024. Notably, that's an increase of 62% over the year before. Notably, the salary which is HK$834.0k, 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 HK$1.6m. Accordingly, Great China Holdings (Hong Kong) pays its CEO under the industry median. Moreover, Wenxi Huang also holds HK$72m worth of Great China Holdings (Hong Kong) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. Although there is a difference in how total compensation is set, Great China Holdings (Hong Kong) more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Great China Holdings (Hong Kong) Limited's Growth

Over the past three years, Great China Holdings (Hong Kong) Limited has seen its earnings per share (EPS) grow by 4.1% per year. Its revenue is up 456% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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 Great China Holdings (Hong Kong) Limited Been A Good Investment?

With a three year total loss of 21% for the shareholders, Great China Holdings (Hong Kong) Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

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. That's why we did our research, and identified 3 warning signs for Great China Holdings (Hong Kong) (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.